BILL No. 18 OF 2016
THE FINANCE BILL, 2016
(AS INTRODUCED IN LOK SABHA)
THE FINANCE BILL, 2016
_________
ARRANGEMENT
OF CLAUSES
__________
CHAPTER I
PRELIMINARY
CLAUSES
1.
Short title and commencement.
CHAPTER II
RATES OF INCOME-TAX
2.
Income-tax.
CHAPTER III
DIRECT TAXES
Income-tax
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
Amendment of section 2.
Amendment of section 6.
Amendment of section 9.
Amendment of section 9A.
Amendment of section 10.
Amendment of section 10AA.
Amendment of section 17.
Amendment of section 24.
Substitution of new section for sections 25A, 25AA and 25B.
Amendment of section 28.
Amendment of section 32.
Amendment of section 32AC.
Amendment of section 35.
Insertion of new section 35ABA.
Amendment of section 35AC.
Amendment of section 35AD.
Amendment of section 35CCC.
Amendment of section 35CCD
Amendment of section 36.
Amendment of section 40.
Amendment of section 43B.
Amendment of section 44AA.
Amendment of section 44AB.
Amendment of section 44AD.
Insertion of new section 44ADA.
Amendment of section 47.
Amendment of section 48.
Amendment of section 50C.
Insertion of new section 54EE.
(ii)
CLAUSES
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
74.
75.
76.
77.
78.
79.
80.
81.
82.
83.
84.
85.
86.
87.
Amendment of section 54GB.
Amendment of section 55.
Amendment of section 56.
Amendment of section 80.
Amendment of section 80CCD.
Substitution of new section for section 80EE.
Amendment of section 80GG.
Amendment of section 80-IA.
Amendment of section 80-IAB.
Insertion of new section 80-IAC.
Amendment of section 80-IB.
Insertion of new section 80-IBA.
Substitution of new section for section 80JJAA.
Amendment of section 87A.
Amendment of section 92CA.
Amendment of section 92D.
Amendment of section 112.
Insertion of new section 115BA.
Insertion of new section 115BBDA.
Amendment of section 115BBE.
Insertion of new section 115BBF.
Amendment of section 115JB.
Insertion of new Chapter XII-BC.
Amendment of section 115-O.
Amendment of section 115QA.
Amendment of section 115TA.
Amendment of section 115TC.
Insertion of new section 115TCA.
Insertion of new Chapter XII-EB.
Amendment of section 115UA.
Amendment of section 119.
Amendment of section 124.
Amendment of section 133C.
Amendment of section 139.
Amendment of section 143.
Amendment of section 147.
Substitution of new section for section 153.
Substitution of new section for section 153B.
Amendment of section 192A.
Amendment of section 194BB.
Amendment of section 194C.
Amendment of section 194D.
Amendment of section 194DA.
Amendment of section 194EE.
Amendment of section 194G.
Amendment of section 194H.
Omission of sections 194K and 194L.
Amendment of section 194LA.
Amendment of section 194LBA.
Amendment of section 194LBB.
Insertion of new section 194LBC.
Amendment of section 197.
Amendment of section 197A.
Amendment of section 206AA.
Amendment of section 206C.
Amendment of section 211.
(iii)
CLAUSES
88.
89.
90.
91.
92.
93.
94.
95.
96.
97.
98.
99.
100.
101.
102.
103.
104.
105.
106.
107.
108.
109.
110.
111.
112.
Amendment of section 220.
Amendment of section 234C.
Amendment of section 244A.
Amendment of section 249.
Amendment of section 252.
Amendment of section 253.
Amendment of section 254.
Amendment of section 255.
Insertion of new section 270A.
Insertion of new section 270AA.
Amendment of section 271.
Amendment of section 271A.
Amendment of section 271AA.
Amendment of section 271AAB.
Insertion of new section 271GB.
Amendment of section 272A.
Amendment of section 273A.
Amendment of section 273AA.
Amendment of section 273B.
Amendment of section 279.
Amendment of section 281B.
Amendment of section 282A.
Insertion of new section 286.
Amendment of section 288.
Amendment of Fourth Schedule.
CHAPTER IV
INDIRECT TAXES
Customs
113.
114.
115.
116.
117.
118.
119.
120.
121.
122.
123.
124.
125.
126.
127.
128.
129.
130.
131.
132.
133.
134.
135.
136.
Amendment of section 2.
Amendment of chapter heading of Chapter III.
Omission of section 9.
Amendment of section 25.
Amendment of section 28.
Amendment of section 47.
Amendment of section 51.
Substitution of new section for section 53.
Substitution of new section for section 57.
Substitution of new sections 58, 58A and 58B for section 58.
Substitution of new section for section 59.
Substitution of new section for section 60.
Substitution of new section for section 61.
Omission of sections 62 and 63.
Substitution of new section for section 64.
Amendment of section 65.
Amendment of section 68.
Amendment of section 69.
Amendment of section 71.
Amendment of section 72.
Amendment of section 73.
Insertion of new section 73A.
Amendment of section 156.
Amendment of notifications issued under section 25 of Act 52 of 1962.
(iv)
CLAUSES
Customs Tariff
137. Omission of section 8C.
138. Amendment of First Schedule.
Excise
139.
140.
141.
142.
Amendment of section 5A.
Amendment of section 11A.
Amendment of section 37B.
Amendment of Third Schedule.
Excise Tariff
143. Amendment of First Schedule.
144. Amendment of Second Schedule.
CHAPTER V
ERVICE TAX
S
145.
146.
147.
148.
149.
150.
151.
152.
153.
154.
155.
156.
157.
Amendment of section 65B.
Amendment of section 66D.
Amendment of section 66E.
Amendment of section 67A.
Amendment of section 73.
Amendment of section 75.
Amendment of section 78A.
Amendment of section 89.
Amendment of section 90.
Amendment of section 91.
Amendment of section 93A.
Insertion of new sections 101, 102 and 103.
Amendment of notification issued under section 93A of Finance Act, 1994.
CHAPTER VI
Krishi Kalyan Cess
158. Krishi Kalyan Cess.
CHAPTER VII
INFRASTRUCTURE CESS
159. Infrastructure Cess.
CHAPTER VIII
EQUALISATION LEVY
160.
161.
162.
163.
164.
165.
166.
167.
168.
169.
Extent, commencement and application.
Definitions.
Charge of equalisation levy.
Collection and recovery of equalisation levy.
Furnishing of statement.
Processing of statement.
Rectification of mistake.
Interest on delayed payment of equalisation levy.
Penalty for failure to deduct or pay equalisation levy.
Penalty for failure to furnish statement.
(v)
CLAUSES
170.
171.
172.
173.
174.
175.
176.
177.
Penalty not to be imposed in certain cases.
Appeal to Commissioner of Income-tax (Appeals).
Appeal to Appellate Tribunal.
Punishment for false statement.
Institution of prosecution.
Application of certains provisions of Income-tax Act.
Power to make rules.
Power to remove difficulties.
CHAPTER IX
THE INCOME DECLARATION SCHEME, 2016
178.
179.
180.
181.
182.
183.
184.
185.
186.
187.
188.
189.
190.
191.
192.
193.
194.
195.
196.
Short title and commencement.
Definitions.
Declaration of undisclosed income.
Charge of tax and surcharge.
Penalty.
Manner of declaration.
Time for payment of tax.
Undisclosed income declared not to be included in total income.
Undisclosed income declared not to affect for finality of completed assessments.
Undisclosed income declared not to be treated as benami transaction in certain cases.
Tax in respect of voluntarily disclosed income not refundable.
Declaration not admissible in evidence against declarant.
Declaration by misrepresentation of facts to be void.
Exemption from Wealth-tax in respect of assets specified in declaration.
Applicability of certain provisions of Income-tax Act and of Chapter V of Wealth-tax Act.
Scheme not to apply to certain persens.
Removal of doubts.
Power to remove difficulties.
Power to make rules.
CHAPTER X
The DIRECT TAX DISPUTE RESOLUTION SCHEME, 2016
197.
198.
199.
200.
201.
202.
203.
204.
205.
206.
207.
208.
Short title and commencement.
Definitions.
Declaration of tax payble.
Particulars to be furnished.
Time and manner of payment.
Immunity from initiation of proceeding in respect of offence and imposition of penalty in certain cases.
No refund of amount paid under Scheme.
No other benefit, concession or immunity to declarant.
Scheme not to apply in certain cases.
Power of Central Government to issue directions, etc.
Power to remove difficulties.
Power to make rules.
CHAPTER XI
The INDIRECT TAX DISPUTE RESOLUTION SCHEME, 2016
209. Short title, application and commencement.
210. Definitions.
(vi)
CLAUSES
211.
212.
213.
214.
215.
Procedure for making declaration.
Scheme not to apply in certain cases.
Immunity from other proceedings under Act.
Consequences of order made under Scheme.
Power to make rules.
CHAPTER XII
MISCELLANEOUS
PART I
AMENDMENTS TO THE RESERVE BANK OF INDIA ACT, 1934
216.
217.
218.
219.
220.
Commencement and amendment of Act 2 of 1934.
Amendment of Preamble.
Amendment of section 2.
Insertion of new Chapter III F.
Amendment of section 58.
PART II
AMENDMENT TO THE CENTRAL SALES TAX ACT, 1956
221. Amendment of Act 74 of 1956.
PART III
AMENDMENT TO THE OIL INDUSTRY (DEVELOPMENT) ACT, 1974
222. Amendment of Schedule to Act 47 of 1974.
PART IV
AMENDMENT TO THE SUMGGLERS AND FOREIGN EXCHANGE MAINPULATORS
(FOREFEITURE OF PROPERTY) ACT, 1976
223. Amendment of Act 13 of 1976.
PART V
AMENDMENT TO THE NARCOTIC DRUGS AND PSYCHOTROPIC SUBSTANCES ACT, 1985
224. Amendment of Act 61 of 1985.
PART VI
AMENDMENT TO THE FOREIGN EXCHANGE MANAGEMENT ACT, 1999
225. Commencement of this Part.
226. Amendment of Act 42 of 1999.
PART VII
AMENDMENT TO THE CENTRAL ROAD FUND ACT, 2000
227. Amendment of Act 54 of 2000.
PART VIII
AMENDMENT TO THE FINANCE ACT, 2001
228. Amendment of Act 14 of 2001.
(vii)
CLAUSES
PART IX
AMENDMENT TO THE PREVENTION OF MONEY-LAUNDERING ACT, 2002
229. Amendment of Act 15 of 2003.
PART X
AMENDMENT TO THE FINANCE (NO.2) ACT, 2004
230. Amendment of Act 23 of 2004.
PART XI
AMENDMENT TO THE FINANCE ACT, 2005
231. Amendment of Act 18 of 2005.
PART XII
AMENDMENT TO THE FINANCE ACT, 2010
232. Amendment of Act 14 of 2010.
PART XIII
AMENDMENT TO THE FOREIGN CONTRIBUTION (REGULATION) ACT, 2010
233. Amendment of section 2 of Act 42 of 2010.
PART XIV
AMENDMENT TO THE FINANCE ACT, 2013
234. Amendment of Act 17 of 2013.
PART XV
AMENDMENT TO THE FINANCE ACT, 2015
235. Amendment of Act 20 of 2015.
PART XVI
REPEAL AND AMENDMENT OF CERTAIN ENACTMENTS
236. Repeal and amendment of certain enactments.
237. Savings.
238. Collection and payment of arrears of duties.
THE FIRST SCHEDULE.
THE SECOND SCHEDULE.
THE THIRD SCHEDULE.
THE FOURTH SCHEDULE.
THE FIFTH SCHEDULE.
THE SIXTH SCHEDULE.
THE SEVENTH SCHEDULE.
THE EIGHTH SCHEDULE.
THE NINTH SCHEDULE.
THE TENTH SCHEDULE.
THE ELEVENTH SCHEDULE.
THE TWELFTH SCHEDULE.
THE THIRTEENTH SCHEDULE.
THE FOURTEENTH SCHEDULE.
THE FIFTEENTH SCHEDULE.
1
AS INTRODUCED IN LOK SABHA
ON 29TH FEBRUARY, 2016
Bill No.18 of 2016
THE FINANCE BILL, 2016
A
BILL
to give effect to the financial proposals of the Central Government for the financial year 2016-2017.
BE it enacted by Parliament in the Sixty-seventh Year of the Republic of India as follows:—
CHAPTER I
PRELIMINARY
1. (1) This Act may be called the Finance Act, 2016.
5
Short title and
commencement.
(2) Save as otherwise provided in this Act, sections 2 to 112 shall be deemed to have come into
force on the 1st day of April, 2016.
CHAPTER II
RATES OF INCOME-TAX
2. (1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on Income-tax.
10 the 1st day of April, 2016, income-tax shall be charged at the rates specified in Part I of the First
Schedule and such tax shall be increased by a surcharge, for purposes of the Union, calculated in
each case in the manner provided therein.
(2) In the cases to which Paragraph A of Part I of the First Schedule applies, where the assessee
has, in the previous year, any net agricultural income exceeding five thousand rupees, in addition to
15 total income, and the total income exceeds two lakh fifty thousand rupees, then,—
(a) the net agricultural income shall be taken into account, in the manner provided in clause (b)
[that is to say, as if the net agricultural income were comprised in the total income after the first two
lakh fifty thousand rupees of the total income but without being liable to tax], only for the purpose of
charging income-tax in respect of the total income; and
20
(b) the income-tax chargeable shall be calculated as follows:—
(i) the total income and the net agricultural income shall be aggregated and the amount of
income-tax shall be determined in respect of the aggregate income at the rates specified in the
said Paragraph A, as if such aggregate income were the total income;
25
30
(ii) the net agricultural income shall be increased by a sum of two lakh fifty thousand rupees,
and the amount of income-tax shall be determined in respect of the net agricultural income as so
increased at the rates specified in the said Paragraph A, as if the net agricultural income as so
increased were the total income;
(iii) the amount of income-tax determined in accordance with sub-clause (i) shall be reduced
by the amount of income-tax determined in accordance with sub-clause (ii) and the sum so
arrived at shall be the income-tax in respect of the total income:
Provided that in the case of every individual, being a resident in India, who is of the age of sixty
years or more but less than eighty years at any time during the previous year, referred to in item (II) of
Paragraph A of Part I of the First Schedule, the provisions of this sub-section shall have effect as if for
the words “two lakh fifty thousand rupees”, the words “three lakh rupees” had been substituted:
35
Provided further that in the case of every individual, being a resident in India, who is of the age of
eighty years or more at any time during the previous year, referred to in item (III) of Paragraph A of Part
I of the First Schedule, the provisions of this sub-section shall have effect as if for the words “two lakh
fifty thousand rupees”, the words “five lakh rupees” had been substituted.
2
(3) In cases to which the provisions of Chapter XII or Chapter XII-A or section 115JB or section 115JC
or Chapter XII-FA or Chapter XII-FB or sub-section (1A) of section 161 or section 164 or section 164A or
43 of 1961.
section 167B of the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act) apply, the tax
chargeable shall be determined as provided in that Chapter or that section, and with reference to the
rates imposed by sub-section (1) or the rates as specified in that Chapter or section, as the case may be: 5
Provided that the amount of income-tax computed in accordance with the provisions of section
111A or section 112 of the Income-tax Act shall be increased by a surcharge, for the purposes of the
Union, as provided in Paragraph A, B, C, D or E, as the case may be, of Part I of the First Schedule:
Provided further that in respect of any income chargeable to tax under section 115A, 115AB, 115AC,
115ACA, 115AD, 115B, 115BB, 115BBA, 115BBC, 115BBD, 115BBE, 115E, 115JB or 115JC of the 10
Income-tax Act, the amount of income-tax computed under this sub-section shall be increased by a
surcharge, for purposes of the Union, calculated,—
(a) in the case of every individual or Hindu undivided family or association of persons or body of
individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause
(vii) of clause (31) of section 2 of the Income-tax Act, or co-operative society or firm or local authority, 15
at the rate of twelve per cent. of such income-tax, where the total income exceeds one crore rupees;
(b) in the case of every domestic company,—
(i) at the rate of seven per cent. of such income-tax, where the total income exceeds one crore
rupees but does not exceed ten crore rupees;
(ii) at the rate of twelve per cent. of such income-tax, where the total income exceeds ten crore 20
rupees;
(c) in the case of every company, other than a domestic company,—
(i) at the rate of two per cent. of such income-tax, where the total income exceeds one crore
rupees but does not exceed ten crore rupees;
(ii) at the rate of five per cent. of such income-tax, where the total income exceeds ten crore 25
rupees:
Provided also that in the case of persons mentioned in (a) above, having total income chargeable to
tax under section 115JC of the Income-tax Act, and such income exceeds one crore rupees, the total
amount payable as income-tax on such income and surcharge thereon shall not exceed the total
amount payable as income-tax on a total income of one crore rupees by more than the amount of 30
income that exceeds one crore rupees:
Provided also that in the case of every company having total income chargeable to tax under section
115JB of the Income-tax Act, and such income exceeds one crore rupees but does not exceed ten
crore rupees, the total amount payable as income-tax on such income and surcharge thereon, shall
not exceed the total amount payable as income-tax on a total income of one crore rupees by more than 35
the amount of income that exceeds one crore rupees:
Provided also that in the case of every company having total income chargeable to tax under section
115JB of the Income-tax Act, and such income exceeds ten crore rupees, the total amount payable as
income-tax on such income and surcharge thereon, shall not exceed the total amount payable as
income-tax and surcharge on a total income of ten crore rupees by more than the amount of income 40
that exceeds ten crore rupees.
(4) In cases in which tax has to be charged and paid under section 115-O or section 115QA or subsection (2) of section 115R or section 115TA or section 115TD of the Income-tax Act, the tax shall be
charged and paid at the rates as specified in those sections and shall be increased by a surcharge, for
purposes of the Union, calculated at the rate of twelve per cent. of such tax.
45
(5) In cases in which tax has to be deducted under sections 193, 194, 194A, 194B, 194BB, 194D,
194LBA, 194LBB, 194LBC and 195 of the Income-tax Act, at the rates in force, the deductions shall be
made at the rates specified in Part II of the First Schedule and shall be increased by a surcharge, for
purposes of the Union, calculated in cases wherever prescribed, in the manner provided therein.
(6) In cases in which tax has to be deducted under sections 192A, 194C, 194DA, 194E, 194EE, 50
194F, 194G, 194H, 194-I, 194-IA, 194J, 194LA, 194LB, 194LBA, 194LBB, 194LBC, 194LC, 194LD,
196B, 196C and 196D of the Income-tax Act, the deductions shall be made at the rates specified in
those sections and shall be increased by a surcharge, for purposes of the Union,—
(a) in the case of every individual or Hindu undivided family or association of persons or body of
individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause 55
(vii) of clause (31) of section 2 of the Income-tax Act, being a non-resident, calculated at the rate of
3
fifteen per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be
paid and subject to the deduction exceeds one crore rupees;
5
(b) in the case of every co-operative society or firm, being a non-resident, calculated at the rate
of twelve per cent. of such tax, where the income or the aggregate of such incomes paid or likely to
be paid and subject to the deduction exceeds one crore rupees;
(c) in the case of every company, other than a domestic company, calculated,—
(i) at the rate of two per cent. of such tax, where the income or the aggregate of such incomes
paid or likely to be paid and subject to the deduction exceeds one crore rupees but does not
exceed ten crore rupees;
10
(ii) at the rate of five per cent. of such tax, where the income or the aggregate of such incomes
paid or likely to be paid and subject to the deduction exceeds ten crore rupees.
(7) In cases in which tax has to be collected under the proviso to section 194B of the Income-tax Act,
the collection shall be made at the rates specified in Part II of the First Schedule, and shall be increased
by a surcharge, for purposes of the Union, calculated, in cases wherever prescribed, in the manner
15 provided therein.
(8) In cases in which tax has to be collected under section 206C of the Income-tax Act, the collection
shall be made at the rates specified in that section and shall be increased by a surcharge, for purposes
of the Union,—
20
25
(a) in the case of every individual or Hindu undivided family or association of persons or body of
individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause
(vii) of clause (31) of section 2 of the Income-tax Act, being a non-resident, calculated at the rate of
fifteen per cent. of such tax, where the amount or the aggregate of such amounts collected and
subject to the collection exceeds one crore rupees;
(b) in the case of every co-operative society or firm, being a non-resident, calculated at the rate
of twelve per cent. of such tax, where the amount or the aggregate of such amounts collected and
subject to the collection exceeds one crore rupees;
(c) in the case of every company, other than a domestic company, calculated,—
30
(i) at the rate of two per cent. of such tax, where the amount or the aggregate of such amounts
collected and subject to the collection exceeds one crore rupees but does not exceed ten crore
rupees;
(ii) at the rate of five per cent. of such tax, where the amount or the aggregate of such amounts
collected and subject to the collection exceeds ten crore rupees.
(9) Subject to the provisions of sub-section (10), in cases in which income-tax has to be charged
under sub-section (4) of section 172 or sub-section (2) of section 174 or section 174A or section 175 or
35 sub-section (2) of section 176 of the Income-tax Act or deducted from, or paid on, income chargeable
under the head “Salaries” under section 192 of the said Act or in which the “advance tax” payable
under Chapter XVII-C of the said Act has to be computed at the rate or rates in force, such income-tax
or, as the case may be, “advance tax” shall be charged, deducted or computed at the rate or rates
specified in Part III of the First Schedule and such tax shall be increased by a surcharge, for purposes
40 of the Union, calculated in such cases and in such manner as provided therein:
Provided that in cases to which the provisions of Chapter XII or Chapter XII-A or section 115JB or
section 115JC or Chapter XII-FA or Chapter XII-FB or sub-section (1A) of section 161 or section 164 or
section 164A or section 167B of the Income-tax Act apply, “advance tax” shall be computed with
reference to the rates imposed by this sub-section or the rates as specified in that Chapter or section,
45 as the case may be:
Provided further that the amount of “advance tax” computed in accordance with the provisions of
section 111A or section 112 of the Income-tax Act shall be increased by a surcharge, for purposes of
the Union, as provided in Paragraph A, B, C, D or E, as the case may be, of Part III of the First
Schedule:
50
55
Provided also that in respect of any income chargeable to tax under sections 115A, 115AB, 115AC,
115ACA, 115AD, 115B, 115BA, 115BB, 115BBA, 115BBC, 115BBD, 115BBDA, 115BBE, 115BBF,
115E, 115JB or 115JC of the Income-tax Act, “advance tax” computed under the first proviso shall be
increased by a surcharge, for purposes of the Union, calculated,—
(a) in the case of every individual or Hindu undivided family or association of persons or body of
individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause
(vii) of clause (31) of section 2 of the Income-tax Act, calculated at the rate of fifteen per cent. of
such “advance tax”, where the total income exceeds one crore rupees;
4
(b) in the case of every co-operative society or firm or local authority, calculated at the rate of
twelve per cent. of such “advance tax”, where the total income exceeds one crore rupees;
(c) in the case of every domestic company, calculated,—
(i) at the rate of seven per cent. of such “advance tax”, where the total income exceeds one
crore rupees but does not exceed ten crore rupees;
5
(ii) at the rate of twelve per cent. of such “advance tax”, where the total income exceeds ten
crore rupees;
(d) in the case of every company, other than a domestic company, calculated,—
(i) at the rate of two per cent. of such “advance tax”, where the total income exceeds one crore
rupees but does not exceed ten crore rupees;
10
(ii) at the rate of five per cent. of such “advance tax”, where the total income exceeds ten crore
rupees:
Provided also that in the case of persons mentioned in (a) and (b) above, having total income
chargeable to tax under section 115JC of the Income-tax Act, and such income exceeds one crore
rupees, the total amount payable as “advance tax” on such income and surcharge thereon shall not 15
exceed the total amount payable as “advance tax” on a total income of one crore rupees by more than
the amount of income that exceeds one crore rupees:
Provided also that in the case of every company having total income chargeable to tax under section
115JB of the Income-tax Act, and such income exceeds one crore rupees but does not exceed ten
crore rupees, the total amount payable as “advance tax” on such income and surcharge thereon, shall 20
not exceed the total amount payable as “advance tax” on a total income of one crore rupees by more
than the amount of income that exceeds one crore rupees:
Provided also that in the case of every company having total income chargeable to tax under section
115JB of the Income-tax Act, and such income exceeds ten crore rupees, the total amount payable as
“advance tax” on such income and surcharge thereon, shall not exceed the total amount payable as 25
“advance tax” and surcharge on a total income of ten crore rupees by more than the amount of income
that exceeds ten crore rupees.
(10) In cases to which Paragraph A of Part III of the First Schedule applies, where the assessee has,
in the previous year or, if by virtue of any provision of the Income-tax Act, income-tax is to be charged
in respect of the income of a period other than the previous year, in such other period, any net agricultural 30
income exceeding five thousand rupees, in addition to total income and the total income exceeds two
lakh fifty thousand rupees, then, in charging income-tax under sub-section (2) of section 174 or section
174A or section 175 or sub-section (2) of section 176 of the said Act or in computing the “advance tax”
payable under Chapter XVII-C of the said Act, at the rate or rates in force,—
(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) 35
[that is to say, as if the net agricultural income were comprised in the total income after the first two
lakh fifty thousand rupees of the total income but without being liable to tax], only for the purpose of
charging or computing such income-tax or, as the case may be, “advance tax” in respect of the total
income; and
(b) such income-tax or, as the case may be, “advance tax” shall be so charged or computed as 40
follows:—
(i) the total income and the net agricultural income shall be aggregated and the amount of
income-tax or “advance tax” shall be determined in respect of the aggregate income at the rates
specified in the said Paragraph A, as if such aggregate income were the total income;
(ii) the net agricultural income shall be increased by a sum of two lakh fifty thousand rupees, 45
and the amount of income-tax or “advance tax” shall be determined in respect of the net agricultural
income as so increased at the rates specified in the said Paragraph A, as if the net agricultural
income were the total income;
(iii) the amount of income-tax or “advance tax” determined in accordance with sub-clause (i)
shall be reduced by the amount of income-tax or, as the case may be, “advance tax” determined 50
in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax or, as the
case may be, “advance tax” in respect of the total income:
Provided that in the case of every individual, being a resident in India, who is of the age of sixty
years or more but less than eighty years at any time during the previous year, referred to in item (II) of
Paragraph A of Part III of the First Schedule, the provisions of this sub-section shall have effect as if for 55
the words “two lakh fifty thousand rupees”, the words “three lakh rupees” had been substituted:
5
Provided further that in the case of every individual, being a resident in India, who is of the age of
eighty years or more at any time during the previous year, referred to in item (III) of Paragraph A of Part
III of the First Schedule, the provisions of this sub-section shall have effect as if for the words “two lakh
fifty thousand rupees”, the words “five lakh rupees” had been substituted:
5
Provided also that the amount of income-tax or “advance tax” so arrived at, shall be increased by a
surcharge for purposes of the Union calculated in each case, in the manner provided therein.
(11) The amount of income-tax as specified in sub-sections (1) to (10) and as increased by the
applicable surcharge, for purposes of the Union, calculated in the manner provided therein, shall be
further increased by an additional surcharge, for purposes of the Union, to be called the “Education
10 Cess on income-tax”, calculated at the rate of two per cent. of such income-tax and surcharge so as to
fulfil the commitment of the Government to provide and finance universalised quality basic education:
Provided that nothing contained in this sub-section shall apply to cases in which tax is to be deducted
or collected under the sections of the Income-tax Act mentioned in sub-sections (5), (6), (7) and (8), if
the income subjected to deduction of tax at source or collection of tax at source is paid to a domestic
15 company and any other person who is resident in India.
(12) The amount of income-tax as specified in sub-sections (1) to (10) and as increased by the
applicable surcharge, for purposes of the Union, calculated in the manner provided therein, shall also
be increased by an additional surcharge, for purposes of the Union, to be called the “Secondary and
Higher Education Cess on income-tax”, calculated at the rate of one per cent. of such income-tax and
20 surcharge so as to fulfil the commitment of the Government to provide and finance secondary and
higher education:
Provided that nothing contained in this sub-section shall apply to cases in which tax is to be deducted
or collected under the sections of the Income-tax Act mentioned in sub-sections (5), (6), (7) and (8), if
the income subjected to deduction of tax at source or collection of tax at source is paid to a domestic
25 company and any other person who is resident in India.
(13) For the purposes of this section and the First Schedule,—
30
(a) “domestic company” means an Indian company or any other company which, in respect of its
income liable to income-tax under the Income-tax Act, for the assessment year commencing on the
1st day of April, 2016, has made the prescribed arrangements for the declaration and payment
within India of the dividends (including dividends on preference shares) payable out of such income;
(b) “insurance commission” means any remuneration or reward, whether by way of commission
or otherwise, for soliciting or procuring insurance business (including business relating to the
continuance, renewal or revival of policies of insurance);
35
(c) “net agricultural income”, in relation to a person, means the total amount of agricultural income,
from whatever source derived, of that person computed in accordance with the rules contained in
Part IV of the First Schedule;
(d) all other words and expressions used in this section and the First Schedule but not defined in
this sub-section and defined in the Income-tax Act shall have the meanings, respectively, assigned
to them in that Act.
CHAPTER III
40
DIRECT TAXES
Income-tax
3. In section 2 of the Income-tax Act,—
45
(a) in clause (14), in item (vi), after the words and figures “Gold Deposit Scheme, 1999”, the
words and figures “or deposit certificates issued under the Gold Monetisation Scheme, 2015” shall
be inserted;
(b) after clause (23B), the following clause shall be inserted with effect from the 1st day of June,
2016, namely:—
‘(23C) “hearing” includes communication of data and documents through electronic mode;’;
50
(c) in clause (24), in sub-clause (xviii), for the words, figures and brackets “other than the subsidy
or grant or reimbursement which is taken into account for determination of the actual cost of the
asset in accordance with the provisions of Explanation 10 to clause (1) of section 43”, the following
shall be substituted with effect from the 1st day of April, 2017, namely:—
Amendment of
section 2.
6
“other than,—
(a) the subsidy or grant or reimbursement which is taken into account for determination of
the actual cost of the asset in accordance with the provisions of Explanation 10 to clause (1) of
section 43; or
(b) the subsidy or grant by the Central Government for the purpose of the corpus of a trust or 5
institution established by the Central Government or a State Government, as the case may be;”;
(d) in clause (37A), in sub-clause (iii), after the words, figures and letters “section 194LBA or”, the
words, figures and letters “section 194LBB or section 194LBC or” shall be inserted with effect from
the 1st day of June, 2016.
Amendment
of section 6.
4. In section 6 of the Income-tax Act, for clause (3), the following clause shall be substituted with 10
effect from the 1st day of April, 2017, namely:—
‘(3) A company is said to be a resident in India in any previous year, if—
(i) it is an Indian company; or
(ii) its place of effective management, in that year, is in India.
Explanation.—For the purposes of this clause “place of effective management” means a place 15
where key management and commercial decisions that are necessary for the conduct of business
of an entity as a whole are, in substance made.’.
Amendment
of section 9.
5. In section 9 of the Income-tax Act, in sub-section (1), in clause (i), in Explanation 1, after clause
(d), the following clause shall be inserted, namely:—
“(e) in the case of a foreign company engaged in the business of mining of diamonds, no income 20
shall be deemed to accrue or arise in India to it through or from the activities which are confined to
the display of uncut and unassorted diamond in any special zone notified by the Central Government
in the Official Gazette in this behalf.”.
Amendment
6. In section 9A of the Income-tax Act, in sub-section (3), with effect from the 1st day of
of section 9A. April, 2017,—
25
(i) in clause (b), after the words “has been entered into”, the words “or is established or incorporated
or registered in a country or a specified territory notified by the Central Government in this behalf”
shall be inserted;
(ii) in clause (k), the words “or from India” shall be omitted.
Amendment
of section 10.
7. In section 10 of the Income-tax Act,—
30
(A) with effect from the 1st day of April, 2017,—
(i) in clause (12), the following shall be inserted, namely:—
‘Provided that nothing contained in this clause shall apply in respect of any amount of
accumulated balance, attributable to any contributions made on or after the 1st day of April,
2016 by an employee other than an excluded employee, exceeding forty per cent. of such 35
accumulated balance due and payable in accordance with provisions of rule 8 of Part A of the
Fourth Schedule.
Explanation.—For the purposes of this clause, the term “excluded employee” means an
employee whose monthly salary does not exceed such amount, as may be prescribed;’;
(ii) after clause (12), the following clause shall be inserted, namely:—
40
“(12A) any payment from the National Pension System Trust to an employee on closure of
his account or on his opting out of the pension scheme referred to in section 80CCD, to the
extent it does not exceed forty per cent. of the total amount payable to him at the time of such
closure or his opting out of the scheme;”;
(iii) in clause (13),—
45
(I) in sub-clause (ii),—
(a) the word “or” occurring at the end shall be omitted;
(b) the following proviso shall be inserted, namely:—
“Provided that any payment in lieu of or in commutation of an annuity purchased out
of contributions made on or after the 1st day of April, 2016, where it exceeds forty per 50
cent. of the annuity, shall be taken into account in computing the total income; or”;
7
(II) in sub-clause (iv), for the word “thereon”, the words “thereon; or” shall be substituted;
(III) after sub-clause (iv), the following sub-clause shall be inserted, namely:—
“(v) by way of transfer to the account of the employee under a pension scheme referred
to in section 80-CCD and notified by the Central Government;”;
5
(B) in clause (15), in sub-clause (vi), after the words and figures “Gold Deposit Scheme, 1999”,
the words and figures “or deposit certificates issued under the Gold Monetisation Scheme, 2015”
shall be inserted;
(C) with effect from the 1st day of April, 2017,—
(I) in clause (23DA), in the Explanation,—
10
(1) in clause (a), after sub-clause (i), the following sub-clause shall be inserted, namely:—
“(ia) in clause (z) of sub-section (1) of section 2 of the Securitisation and Reconstruction
of Financial Assets and Enforcement of Security Interest Act, 2002; or”;
54 of 2002.
(2) in clause (b), for the word, figures and letters “section 115TC”, the word, figures and
letters “section 115TCA” shall be substituted;
15
(II) in clause (23FC), for the words “by way of interest received or receivable from a special
purpose vehicle”, the following shall be substituted, namely:—
“by way of—
(a) interest received or receivable from a special purpose vehicle; or
(b) dividend referred to in sub-section (7) of section 115-O”;
20
(III) in clause (23FD), for the words, brackets, figures and letters “in clause (23FC)”, the words,
brackets, letters and figures “in sub-clause (a) of clause (23FC)” shall be substituted;
(IV) in clause (34), the following proviso shall be inserted, namely:—
“Provided that nothing in this clause shall apply to any income by way of dividend chargeable
to tax in accordance with the provisions of section 115BBDA;”;
25
(V) in clause (35A),—
(a) before the Explanation, the following proviso shall be inserted, namely:—
“Provided that nothing contained in this clause shall apply to any income by way of
distributed income referred to in the said section, received on or after the 1st day of
June, 2016.”;
30
(b) in the Explanation, for the word, figures and letters “section 115TC”, the word, figures
and letters “section 115TCA” shall be substituted;
(VI) in clause (38),—
(i) after the second proviso, the following proviso shall be inserted, namely:—
35
“Provided also that nothing contained in sub-clause (b) shall apply to a transaction
undertaken on a recognised stock exchange located in any International Financial
Services Centre and where the consideration for such transaction is paid or payable in
foreign currency.”;
(ii) for the Explanation, the following Explanation shall be substituted, namely:—
‘Explanation.—For the purposes of this clause,—
40
(a) “equity oriented fund” means a fund—
(i) where the investible funds are invested by way of equity shares in domestic
companies to the extent of more than sixty-five per cent. of the total proceeds of such
fund; and
45
(ii) which has been set up under a scheme of a Mutual Fund specified under
clause (23D):
Provided that the percentage of equity share holding of the fund shall be computed
with reference to the annual average of the monthly averages of the opening and
closing figures;
8
(b) “International Financial Services Centre” shall have the same meaning as
assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005;
28 of 2005.
(c) “recognised stock exchange” shall have the meaning assigned to it in clause (ii) of
the Explanation 1 to sub-section (5) of section 43.’;
(D) after clause (48), the following clause shall be inserted, namely:—
5
“(48A) any income accruing or arising to a foreign company on account of storage of crude
oil in a facility in India and sale of crude oil therefrom to any person resident in India:
Provided that —
(i) the storage and sale by the foreign company is pursuant to an agreement or an
arrangement entered into by the Central Government or approved by the Central Government; 10
and
(ii) having regard to the national interest, the foreign company and the agreement or
arrangement are notified by the Central Government in this behalf;”;
(E) after clause (49), the following clause shall be inserted with effect from the 1st day of June,
2016, namely:—
15
‘(50) any income arising from any specified service provided on or after the date on which
the provisions of Chapter VIII of the Finance Act, 2016 comes into force and chargeable to
equalisation levy under that Chapter.
Explanation.—For the purposes of this clause, “specified service” shall have the meaning
assigned to it in clause (i) of section 161 of Chapter VIII of the Finance Act, 2016.’.
20
Amendment
of section
10AA.
8. In section 10AA of the Income-tax Act, in sub-section (1), for the words and figures “April, 2006,
a deduction of”, the words, figures and letters “April, 2006, but before the 1st day of April, 2021, the
following deduction shall be allowed” shall be substituted with effect from the 1st day of April, 2017.
Amendment
9. In section 17 of the Income-tax Act, in sub-section (2), in clause (vii), for the words “one lakh
of section 17. rupees”, the words “one lakh and fifty thousand rupees” shall be substituted with effect from the 1st day
25
of April, 2017.
Amendment
10. In section 24 of the Income-tax Act, in clause (b), in the second proviso, for the words “three
of section 24. years”, the words “five years” shall be substituted with effect from the 1st day of April, 2017.
Substitution of
11. For sections 25A, 25AA and 25B of the Income-tax Act, the following section shall be substituted
new section
with effect from the 1st day of April, 2017, namely:—
30
for sections
25A, 25AA
and 25B.
Special
provision for
arrears of
rent and
unrealised
rent received
subsequently.
‘25A. (1) The amount of arrears of rent received from a tenant or the unrealised rent realised
subsequently from a tenant, as the case may be, by an assessee shall be deemed to be the income
from house property in respect of the financial year in which such rent is received or realised, and
shall be included in the total income of the assessee under the head “Income from house property”,
whether the assessee is the owner of the property or not in that financial year.
35
(2) A sum equal to thirty per cent. of the arrears of rent or the unrealised rent referred to in
sub-section (1) shall be allowed as deduction.’.
Amendment
of section 28.
12. In section 28 of the Income-tax Act, in clause (va), with effect from the 1st day of April, 2017,—
(A) in sub-clause (a), after the words “any business”, the words “or profession” shall be inserted;
(B) in the proviso, in clause (i), after the words “any business”, the words “or profession” shall be 40
inserted.
Amendment
of section 32.
Amendment
of section
32AC.
13. In section 32 of the Income-tax Act, in sub-section (1), in clause (iia), for the words “or in the
business of generation or generation and distribution”, the words “or in the business of generation,
transmission or distribution” shall be substituted with effect from the 1st day of April, 2017.
14. In section 32AC of the Income-tax Act, in sub-section (1A),—
45
(i) for the words “acquired and installed during any previous year exceeds twenty-five crore
rupees”, the words, figures and letters “acquired during any previous year exceeds twenty-five
crore rupees and such assets are installed on or before the 31st day of March, 2017” shall be
substituted;
(ii) before the proviso, the following proviso shall be inserted, namely:—
50
9
“Provided that where the installation of the new assets are in a year other than the year of
acquisition, the deduction under this sub-section shall be allowed in the year in which the new
assets are installed.”;
5
(iii) in the existing proviso, for the words “Provided that”, the words “Provided further that” shall be
substituted.
15. In section 35 of the Income-tax Act, with effect from the 1st day of April, 2018,—
Amendment of
section 35.
(i) in sub-section (1),—
(a) in clause (ii),—
(I) for the words “one and three-fourth”, the words “one and one-half” shall be substituted;
10
(II) after the proviso, the following proviso shall be inserted, namely:—
“Provided further that where any sum is paid to such association, university, college or
other institution in a previous year relevant to the assessment year beginning on or after the
1st day of April, 2021, the deduction under this clause shall be equal to the sum so paid;”;
(b) in clause (iia), the words “an amount equal to one and one-fourth times of” shall be omitted;
15
(c) in clause (iii), the words “an amount equal to one and one-fourth times of” shall be omitted;
(ii) in sub-section (2AA),—
(A) in clause (a), for the words “two times”, the words “one and one-half times” shall be
substituted;
20
(B) after the proviso and before Explanation 1, the following proviso shall be inserted,
namely:—
“Provided further that where any sum is paid to such National Laboratory or university or
Indian Institute of Technology or specified person in a previous year relevant to the assessment
year beginning on or after the 1st day of April, 2021, the deduction under this sub-section shall
be equal to the sum so paid.”;
25
(iii) in sub-section (2AB),—
(a) in clause (1), for the words “two times”, the words “one and one-half times” shall be
substituted;
(b) after clause (1) and before the Explanation, the following proviso shall be inserted, namely:—
30
“Provided that where such expenditure on scientific research (not being expenditure in the
nature of cost of any land or building) on in-house research and development facility is incurred
in a previous year relevant to the assessment year beginning on or after the 1st day of April,
2021, the deduction under this clause shall be equal to the expenditure so incurred.”;
(c) clause (5) shall be omitted.
16. After section 35AB of the Income-tax Act, the following section shall be inserted with effect from Insertion of
new section
35 the 1st day of April, 2017, namely:—
40
‘35ABA. (1) In respect of any expenditure, being in the nature of capital expenditure, incurred for
acquiring any right to use spectrum for telecommunication services either before the commencement
of the business or thereafter at any time during any previous year and for which payment has
actually been made to obtain a right to use spectrum, there shall, subject to and in accordance with
the provisions of this section, be allowed for each of the relevant previous years, a deduction equal
to the appropriate fraction of the amount of such expenditure.
(2) The provisions contained in sub-sections (2) to (8) of section 35ABB, shall apply as if for the
word “licence”, the word “spectrum” had been substituted.
Explanation.— For the purposes of this section,—
45
(i) “relevant previous years” means,—
(A) in a case where the spectrum fee is actually paid before the commencement of the
business to operate telecommunication services, the previous years beginning with the previous
year in which such business commenced;
50
(B) in any other case, the previous years beginning with the previous year in which the
spectrum fee is actually paid,
35ABA.
Expenditure
for obtaining
right to use
spectrum for
telecommunication services.
10
and the subsequent previous year or years during which the spectrum, for which the fee is paid,
shall be in force;
(ii) “appropriate fraction” means the fraction, the numerator of which is one and the denominator
of which is the total number of the relevant previous years;
(iii) “payment has actually been made” means the actual payment of expenditure irrespective
of the previous year in which the liability for the expenditure was incurred according to the method
of accounting regularly employed by the assessee.’.
Amendment
of section
35AC.
5
17. In section 35AC of the Income-tax Act, after sub-section (6) and before the Explanation, the
following sub-section shall be inserted with effect from the 1st day of April, 2017, namely:—
“(7) No deduction under this section shall be allowed in respect of any assessment year 10
commencing on or after the 1st day of April, 2018.”.
Amendment
of section
35AD.
18. In section 35AD of the Income-tax Act, with effect from the 1st day of April, 2018,—
(a) sub-section (1A) shall be omitted;
(b) in sub-section (2), after clause (iii), the following clause shall be inserted, namely:—
“(iv) where the business is of the nature referred to in sub-clause (xiv) of clause (c) of 15
sub-section (8), such business,—
(A) is owned by a company registered in India or by a consortium of such companies or by
an authority or a board or corporation or any other body established or constituted under any
Central or State Act;
(B) entity referred to in sub-clause (A) has entered into an agreement with the Central 20
Government or a State Government or a local authority or any other statutory body for developing
or operating and maintaining or developing, operating and maintaining, a new infrastructure
facility.”;
(c) in sub-section (5),—
(I) in clause (aj), the word “and” occurring at the end shall be omitted;
25
(II) after clause (aj), the following clause shall be inserted, namely:—
“(ak) on or after the 1st day of April, 2017, where the specified business is in the nature of
developing or operating and maintaining or developing, operating and maintaining, any
infrastructure facility; and”;
(d) in sub-section (8),—
30
(I) after clause (b), the following clause shall be inserted, namely:—
‘(ba) “infrastructure facility” means—
(i) a road including toll road, a bridge or a rail system;
(ii) a highway project including housing or other activities being an integral part of the
highway project;
35
(iii) a water supply project, water treatment system, irrigation project, sanitation and
sewerage system or solid waste management system;
(iv) a port, airport, inland waterway, inland port or navigational channel in the sea;’;
(II) in clause (c), after sub-clause (xiii), the following sub-clause shall be inserted, namely:—
“(xiv) developing or maintaining and operating or developing, maintaining and operating a 40
new infrastructure facility.”.
Amendment
of section
35CCC.
19. In section 35CCC of the Income-tax Act, in sub-section (1), the words “one and one-half times
of” shall be omitted with effect from the 1st day of April, 2018.
Amendment
of section
35CCD.
20. In section 35CCD of the Income-tax Act, in sub-section (1), the following proviso shall be inserted
with effect from the 1st day of April, 2017, namely:—
45
‘Provided that for the assessment year beginning on or after the 1st day of April, 2021, the provisions
of this sub-section shall have effect, as if for the words “an amount equal to one and one-half times
of”, the words “a sum equal to” had been substituted.’.
11
21. In section 36 of the Income-tax Act, in sub-section (1), in clause (viia), with effect from the Amendment
of section 36.
1st day of April, 2017,—
(i) after sub-clause (c) and before the Explanation, the following sub-clause shall be inserted, namely:—
5
“(d) a non-banking financial company, an amount not exceeding five per cent. of the total
income (computed before making any deduction under this clause and Chapter VI-A).”;
(ii) in the Explanation, after clause (vi), the following clause shall be inserted, namely:—
‘(vii) “non-banking financial company” shall have the meaning assigned to it in clause (f) of
section 45-I of the Reserve Bank of India Act, 1934;’.
2 of 1934.
22. In section 40 of the Income-tax Act, in clause (a), after sub-clause (ia), the following sub-clause Amendment
of section 40.
10 shall be inserted with effect from the 1st day of June, 2016, namely:—
“(ib) any consideration paid or payable to a non-resident for a specified service on which
equalisation levy is deductible under the provisions of Chapter VIII of the Finance Act, 2016, and
such levy has not been deducted or after deduction, has not been paid on or before the due date
specified in sub-section (1) of section 139:
15
Provided that where in respect of any such consideration, the equalisation levy has been deducted
in any subsequent year or has been deducted during the previous year but paid after the due date
specified in sub-section (1) of section 139, such sum shall be allowed as a deduction in computing
the income of the previous year in which such levy has been paid;”.
23. In section 43B of the Income-tax Act, with effect from the 1st day of April, 2017,—
20
Amendment of
section 43B.
(i) in clause (f), for the word “employee” occurring at the end, the words “employee, or” shall be
substituted;
(ii) after clause (f), the following clause shall be inserted, namely:—
“(g) any sum payable by the assessee to the Indian Railways for the use of railway assets,”.
24. In section 44AA of the Income-tax Act, in sub-section (2), for clause (iv), the following clause Amendment of
section 44AA.
25 shall be substituted with effect from the 1st day of April, 2017, namely:—
“(iv) where the provisions of sub-section (4) of section 44AD are applicable in his case and his
income exceeds the maximum amount which is not chargeable to income-tax in any
previous year,”.
25. In section 44AB of the Income-tax Act, with effect from the 1st day of April, 2017,—
30
Amendment of
section 44AB.
(i) in clause (b), for the words “twenty-five lakh rupees”, the words “fifty lakh rupees” shall be
substituted;
(ii) in clause (d),—
(a) for the word “business” wherever it occurs, the word “profession” shall be substituted;
35
(b) for the words, figures and letters “under section 44AD”, the words, figures and letters
“under section 44ADA” shall be substituted;
(c) for the words “previous year”, the words “previous year; or” shall be substituted;
(iii) after clause (d) and before the long line, the following clause shall be inserted, namely:—
40
“(e) carrying on the business shall, if the provisions of sub-section (4) of section 44AD are
applicable in his case and his income exceeds the maximum amount which is not chargeable to
income-tax in any previous year,”.
26. In section 44AD of the Income-tax Act, with effect from the 1st day of April, 2017,—
(a) in sub-section (2), the proviso shall be omitted;
(b) for sub-sections (4) and (5), the following sub-sections shall be substituted, namely:—
45
50
“(4) Where an eligible assessee declares profit for any previous year in accordance with
the provisions of this section and he declares profit for any of the five assessment years
relevant to the previous year succeeding such previous year not in accordance with the
provisions of sub-section (1), he shall not be eligible to claim the benefit of the provisions of
this section for five assessment years subsequent to the assessment year relevant to the
previous year in which the profit has not been declared in accordance with the provisions of
sub-section (1).
Amendment of
section 44AD.
12
(5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible
assessee to whom the provisions of sub-section (4) are applicable and whose total income exceeds
the maximum amount which is not chargeable to income-tax , shall be required to keep and
maintain such books of account and other documents as required under sub-section (2) of section
44AA and get them audited and furnish a report of such audit as required under section 44AB.”; 5
(c) in the Explanation, in clause (b), in sub-clause (ii), for the words “one crore rupees” occurring
at the end, the words “two crore rupees” shall be substituted.
Insertion of
new section
44ADA.
Special
provision for
computing
profits and
gains of
profession on
presumptive
basis.
27. After section 44AD of the Income-tax Act, the following section shall be inserted with effect from
the 1st day of April, 2017, namely:—
‘44ADA.(1) Notwithstanding anything contained in sections 28 to 43C, in the case of an assessee, 10
being a resident in India, who is engaged in a profession referred to in sub-section (1) of section
44AA and whose total gross receipts do not exceed fifty lakh rupees in a previous year, a sum equal
to fifty per cent. of the total gross receipts of the assessee in the previous year on account of such
profession or, as the case may be, a sum higher than the aforesaid sum claimed to have been
earned by the assessee, shall be deemed to be the profits and gains of such profession chargeable 15
to tax under the head “Profits and gains of business or profession”.
(2) Any deduction allowable under the provisions of sections 30 to 38 shall, for the purposes of
sub-section (1), be deemed to have been already given full effect to and no further deduction under
those sections shall be allowed.
(3) The written down value of any asset used for the purposes of profession shall be deemed to 20
have been calculated as if the assessee had claimed and had been actually allowed the deduction
in respect of the depreciation for each of the relevant assessment years.
(4) Notwithstanding anything contained in the foregoing provisions of this section, an assessee
who claims that his profits and gains from the profession are lower than the profits and gains specified
in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to 25
income-tax, shall be required to keep and maintain such books of account and other documents as
required under sub-section (1) of section 44AA and get them audited and furnish a report of such
audit as required under section 44AB.’.
Amendment
of section 47.
28. In section 47 of the Income-tax Act, with effect from the 1st day of April, 2017,—
(A) after clause (viib), the following clause shall be inserted, namely:—
30
“(viic) any transfer of Sovereign Gold Bond issued by the Reserve Bank of India under the
Sovereign Gold Bond Scheme, 2015, by way of redemption, by an assessee being an individual;”;
(B) in clause (xiiib), in the proviso,—
(I) in clause (e), the word “and” appearing at the end shall be omitted;
(II) after clause (e), the following clause shall be inserted, namely:—
35
“(ea) the total value of the assets as appearing in the books of account of the company in
any of the three previous years preceding the previous year in which the conversion takes
place does not exceed five crore rupees; and;”;
(C) after clause (xviii), the following clause shall be inserted with effect from the 1st day of
April, 2017, namely:—
40
‘(xix) any transfer by a unit holder of a capital asset, being a unit or units, held by him in the
consolidating plan of a mutual fund scheme, made in consideration of the allotment to him of
a capital asset, being a unit or units, in the consolidated plan of that scheme of the
mutual fund.
Explanation.—For the purposes of this clause,—
(a) “consolidating plan” means the plan within a scheme of a mutual fund which merges
under the process of consolidation of the plans within a scheme of mutual fund in accordance
with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 made
under the Securities and Exchange Board of India Act, 1992;
45
15 of 1992.
13
(b) “consolidated plan” means the plan with which the consolidating plan merges or which is
formed as a result of such merger;
(c) “mutual fund” means a mutual fund specified under clause (23D) of section 10.’.
5
29. In section 48 of the Income-tax Act, for the third proviso, the following provisos shall be substituted Amendment
of section 48.
with effect from the 1st day of April, 2017,—
“Provided also that nothing contained in the second proviso shall apply to the long-term capital
gain arising from the transfer of a long-term capital asset, being a bond or debenture other than—
(a) capital indexed bonds issued by the Government; or
10
(b) Sovereign Gold Bond issued by the Reserve Bank of India under the Sovereign Gold Bond
Scheme, 2015:
Provided also that in case of an assessee being a non-resident, any gains arising on account of
appreciation of rupee against a foreign currency at the time of redemption of rupee denominated
bond of an Indian company subscribed by him, shall be ignored for the purposes of computation of
full value of consideration under this section:”.
15
30. In section 50C of the Income-tax Act, in sub-section (1), the following provisos shall be inserted Amendment
of section
with effect from the 1st day of April, 2017, namely:—
50C.
20
“Provided that where the date of the agreement fixing the amount of consideration and the date
of registration for the transfer of the capital asset are not the same, the value adopted or assessed
or assessable by the stamp valuation authority on the date of agreement may be taken for the
purposes of computing full value of consideration for such transfer:
Provided further that the first proviso shall apply only in a case where the amount of consideration,
or a part thereof, has been received by way of an account payee cheque or account payee bank
draft or by use of electronic clearing system through a bank account, on or before the date of the
agreement for transfer.”.
25
30
31. After section 54ED of the Income-tax Act, the following section shall be inserted with effect from Insertion of
new section
the 1st day of April, 2017, namely:—
‘54EE. (1) Where the capital gain arises from the transfer of a long-term capital asset (herein in
this section referred to as the original asset) and the assessee has, at any time within a period of six
months after the date of such transfer, invested the whole or any part of capital gains in the
long-term specified asset, the capital gain shall be dealt with in accordance with the following
provisions of this section, namely:—
(a) if the cost of the long-term specified asset is not less than the capital gain arising from the
transfer of the original asset, the whole of such capital gain shall not be charged under
section 45;
35
40
(b) if the cost of the long-term specified asset is less than the capital gain arising from the
transfer of the original asset, so much of the capital gain as bears to the whole of the capital gain
the same proportion as the cost of acquisition of the long-term specified asset bears to the whole
of the capital gain, shall not be charged under section 45:
Provided that the investment made on or after the 1st day of April, 2016, in the long-term specified
asset by an assessee during any financial year does not exceed fifty lakh rupees:
Provided further that the investment made by an assessee in the long-term specified asset, from
capital gains arising from the transfer of one or more original assets, during the financial year in
which the original asset or assets are transferred and in the subsequent financial year does not
exceed fifty lakh rupees.
45
50
(2) Where the long-term specified asset is transferred by the assessee at any time within a period
of three years from the date of its acquisition, the amount of capital gains arising from the transfer of
the original asset not charged under section 45 on the basis of the cost of such long-term specified
asset as provided in clause (a) or, as the case may be, clause (b) of sub-section (1) shall be deemed
to be the income chargeable under the head “Capital gains” relating to long-term capital asset of the
previous year in which the long-term specified asset is transferred.
50
Explanation 1.—In a case where the original asset is transferred and the assessee invests the
whole or any part of the capital gain received or accrued as a result of transfer of the original asset
in any long-term specified asset and such assessee takes any loan or advance on the security of
such specified asset, he shall be deemed to have transferred such specified asset on the date on
which such loan or advance is taken.
54EE.
Capital gain
not to be
charged on
investment in
units of a
specified
fund.
14
Explanation 2.—For the purposes of this section,—
(a) “cost”, in relation to any long-term specified asset, means the amount invested in such
specified asset out of capital gains received or accruing as a result of the transfer of the original
asset;
Amendment
of section
54GB.
(b) “long-term specified asset” means a unit or units, issued before the 1st day of April, 2019,
of such fund as may be notified by the Central Government in this behalf.’.
5
32. In section 54GB of the Income-tax Act, with effect from the 1st day of April, 2017,—
(a) after sub-section (5), the following proviso shall be inserted, namely:—
“Provided that in case of an investment in eligible start-up, the provisions of this sub-section
shall have the effect as if for the figures, letters and words “31st day of March, 2017”, the figures, 10
letters and words “31st day of March, 2019” had been substituted;”;
(b) in sub-section (6),—
(i) in clause (b),—
(A) in sub-clause (ii), after the words “an article or a thing”, the words “or in an eligible
business” shall be inserted;
15
(B) in sub-clause (iv), after the words and figures “Micro, Small and Medium
Enterprises Act, 2006”, the words “or is an eligible start-up” shall be inserted;
27 of 2006.
(ii) after clause (b), the following clause shall be inserted, namely:—
‘(ba) “eligible start-up” and “eligible business” shall have the meanings respectively assigned
to them in Explanation below sub-section (4) of section 80-IAC.’;
20
(iii) after clause (d), the following proviso shall be inserted, namely:—
“Provided that in the case of an eligible start-up, being a technology driven start-up so certified
by the Inter-Ministerial Board of Certification notified by the Central Government in the Official
Gazette, the new asset shall include computers or computer software.”.
Amendment
of section 55.
33. In section 55 of the Income-tax Act, with effect from the 1st day of April, 2017,—
25
(i) in sub-section (1), in clause (b), in sub-clause (1), after the words “any business”, the words “or
profession” shall be inserted;
Amendment
of section 56.
(ii) in sub-section (2), in clause (a), after the words “any business”, the words “or profession” shall
be inserted.
34. In section 56 of the Income-tax Act, in sub-section (2), in clause (vii), in the second proviso 30
occurring after sub-clause (c), with effect from the 1st day of April, 2017,—
(a) in clause (g), for the word, figures and letters “section 12AA”, the words, figures and letters
“section 12AA; or” shall be substituted;
(b) after clause (g), the following clause shall be inserted, namely:—
Amendment
of section 80.
Amendment
of section
80CCD.
“(h) by way of transaction not regarded as transfer under clause (vicb) or clause (vid) or 35
clause (vii) of section 47.”.
35. In section 80 of the Income-tax Act, after the words, brackets and figures “sub-section (2) of
section 73”, the words, brackets, figures and letter “or sub-section (2) of section 73A” shall be inserted.
36. In section 80CCD of the Income-tax Act, in sub-section (3), the following proviso shall be inserted
with effect from the 1st day of April, 2017, namely:—
40
“Provided that the amount received by the nominee, on the death of the assessee, under the
circumstances referred to in clause (a), shall not be deemed to be the income of the nominee.”.
Substitution of
new section
37. For section 80EE of the Income-tax Act, the following section shall be substituted with effect
for section
from
the 1st day of April, 2017, namely:—
80EE.
Deduction in
respect of
‘80EE. (1) In computing the total income of an assessee, being an individual, there shall be 45
interest on
deducted,
in accordance with and subject to the provisions of this section, interest payable on loan
loan taken for
taken by him from any financial institution for the purpose of acquisition of a residential property.
residential
house
(2) The deduction under sub-section (1) shall not exceed fifty thousand rupees and shall be
property.
allowed in computing the total income of the individual for the assessment year beginning on the 1st
day of April, 2017 and subsequent assessment years.
15
(3) The deduction under sub-section (1) shall be subject to the following conditions, namely:—
(i) the loan has been sanctioned by the financial institution during the period beginning on the
1st day of April, 2016 and ending on the 31st day of March, 2017;
5
(ii) the amount of loan sanctioned for acquisition of the residential house property does not
exceed thirty-five lakh rupees;
(iii) the value of residential house property does not exceed fifty lakh rupees;
(iv) the assessee does not own any residential house property on the date of sanction of loan.
10
(4) Where a deduction under this section is allowed for any interest referred to in sub-section (1),
deduction shall not be allowed in respect of such interest under any other provision of this Act for the
same or any other assessment year.
(5) For the purposes of this section,—
(a) “financial institution” means a banking company to which the Banking Regulation Act, 1949
applies, or any bank or banking institution referred to in section 51 of that Act or a housing
finance company;
10 of 1949.
15
(b) “housing finance company” means a public company formed or registered in India with the
main object of carrying on the business of providing long-term finance for construction or purchase
of houses in India for residential purposes.’.
38. In section 80GG of the Income-tax Act, for the words “two thousand rupees”, the words “five Amendment
of section
thousand rupees” shall be substituted with effect from the 1st day of April, 2017.
80GG.
20
25
39. In section 80-IA of the Income-tax Act, in sub-section (4), in clause (i), after the proviso and Amendment
before the Explanation, the following proviso shall be inserted with effect from the 1st day of April, of section
80-IA.
2017, namely:—
“Provided further that nothing contained in this section shall apply to any enterprise which starts
the development or operation and maintenance of the infrastructure facility on or after the 1st day of
April, 2017.”.
40. In section 80-IAB of the Income-tax Act, in sub-section (1), the following proviso shall be inserted Amendment
of section
with effect from the 1st day of April, 2017, namely:—
80-IAB.
“Provided that the provisions of this section shall not apply to an assessee, being a developer,
where the development of Special Economic Zone begins on or after the 1st day of April, 2017.”.
30
41. After section 80-IAB of the Income-tax Act, the following section shall be inserted with effect Insertion of
new section
from the 1st day of April, 2017, namely:—
80-IAC.
35
‘80-IAC. (1) Where the gross total income of an assessee, being an eligible start-up, includes any
profits and gains derived from eligible business, there shall, in accordance with and subject to the
provisions of this section, be allowed, in computing the total income of the assessee, a deduction of
an amount equal to one hundred per cent. of the profits and gains derived from such business for
three consecutive assessment years.
(2) The deduction specified in sub-section (1) may, at the option of the assessee, be claimed by
him for any three consecutive assessment years out of five years beginning from the year in which
the eligible start-up is incorporated.
40
(3) This section applies to a start-up which fulfils the following conditions, namely:—
(i) it is not formed by splitting up, or the reconstruction, of a business already in existence:
45
Provided that this condition shall not apply in respect of a start-up which is formed as a result
of the re-establishment, reconstruction or revival by the assessee of the business of any such
undertaking as referred to in section 33B, in the circumstances and within the period specified in
that section;
(ii) it is not formed by the transfer to a new business of machinery or plant previously used for
any purpose.
50
Explanation 1.— For the purposes of this clause, any machinery or plant which was used
outside India by any person other than the assessee shall not be regarded as machinery or plant
previously used for any purpose, if all the following conditions are fulfilled, namely:—
(a) such machinery or plant was not, at any time previous to the date of the installation by
the assessee, used in India;
Special
provision in
respect of
specified
business.
16
(b) such machinery or plant is imported into India;
(c) no deduction on account of depreciation in respect of such machinery or plant has been
allowed or is allowable under the provisions of this Act in computing the total income of any
person for any period prior to the date of the installation of the machinery or plant by the
assessee.
5
Explanation 2.—Where in the case of a start-up, any machinery or plant or any part
thereof previously used for any purpose is transferred to a new business and the total
value of the machinery or plant or part so transferred does not exceed twenty per cent. of
the total value of the machinery or plant used in the business, then, for the purposes of
clause (ii) of this sub-section, the condition specified therein shall be deemed to have 10
been complied with.
(4) The provisions of sub-section (5) and sub-sections (7) to (11) of section 80-IA shall apply to
the start-ups for the purpose of allowing deductions under sub-section (1).
Explanation.—For the purposes of this section,—
(i) “eligible business” means a business which involves innovation, development, deployment 15
or commercialisation of new products, processes or services driven by technology or intellectual
property;
(ii) “eligible start-up” means a company engaged in eligible business which fulfils the following
conditions, namely:—
(a) it is incorporated on or after the 1st day of April, 2016 but before the 1st day of 20
April, 2019;
(b) the total turnover of its business does not exceed twenty-five crore rupees in any of the
previous years beginning on or after the 1st day of April, 2016 and ending on the 31st day of
March, 2021; and
(c) it holds a certificate of eligible business from the Inter-Ministerial Board of Certification 25
as notified in the Official Gazette by the Central Government.’.
Amendment
of section
80-IB.
42. In section 80-IB of the Income-tax Act, in sub-section (9), with effect from the 1st day of
April, 2017,—
(a) in clause (ii), after the words, figures and letters “the 1st day of April, 1997”, the words, figures
and letters “but not later than the 31st day of March, 2017” shall be inserted;
30
(b) in clause (iv), after the words, figures and letters “the 1st day of April, 2009”, the words, figures
and letters “but not later than the 31st day of March, 2017” shall be inserted;
(c) in clause (v), after the words, figures and letters “the 1st day of April, 2009”, the words, figures
and letters “but not later than the 31st day of March, 2017” shall be inserted.
Insertion of
43. After section 80-IB of the Income-tax Act, the following section shall be inserted with effect from 35
new section the 1st day of April, 2017, namely:—
80-IBA.
Deductions in
‘80-IBA. (1) Where the gross total income of an assessee includes any profits and gains derived
respect of
from the business of developing and building housing projects, there shall, subject to the provisions
profits and
of this section, be allowed, a deduction of an amount equal to hundred per cent. of the profits and
gains from
gains derived from such business.
housing
40
projects.
(2) For the purposes of sub-section (1), a housing project shall be a project which fulfils the
following conditions, namely:—
(a) the project is approved by the competent authority after the 1st day of June, 2016, but on
or before the 31st day of March, 2019, in accordance with such guidelines as may be prescribed;
(b) the project is completed within a period of three years from the date of approval by the 45
competent authority:
Provided that,—
(i) where the approval in respect of a housing project is obtained more than once, the
project shall be deemed to have been approved on the date on which the project was first
approved by the competent authority; and
50
(ii) the project shall be deemed to have been completed when a certificate of completion of
project as a whole is obtained in writing from the competent authority;
17
(c) the built-up area of the shops and other commercial establishments included in the housing
project does not exceed three per cent. of the aggregate built-up area;
5
10
(d) the project is on a plot of land measuring not less than one thousand square metres where
such project is located within the cities of Chennai, Delhi, Kolkata or Mumbai or within the area of
twenty-five kilometres from the municipal limits of these cities, or two thousand square metres
within the jurisdiction of any other municipality or cantonment board;
(e) the residential units comprised in the housing project does not exceed thirty square
metres where such project is located within the cities of Chennai, Delhi, Kolkata or Mumbai or
within the area of twenty-five kilometres from the municipal limits of these cities, or sixty square
metres, where such project is located within the jurisdiction of any other municipality or
cantonment board;
(f) where a residential unit in the housing project is allotted to an individual, no other residential
unit in the housing project shall be allotted to the individual or the spouse or the minor children of
such individual;
15
(g) the project utilises—
20
(i) not less than ninety per cent. of the floor area ratio permissible in respect of the plot of
land under the rules to be made by the Central Government or the State Government or the
local authority, as the case may be, where the project is located within the cities of Chennai,
Delhi, Kolkata or Mumbai or within the area of twenty-five kilometres from the municipal limits
of these cities, or
(ii) not less than eighty per cent. of such floor area ratio where such project is located in any
area other than the areas referred to in sub-clause (i); and
(h) the assessee maintains separate books of account in respect of the housing project.
25
30
35
(3) Nothing contained in this section shall apply to any undertaking which executes the housing
project as a works-contract awarded by any person (including the Central Government or the
State Government).
(4) Where the housing project is not completed within the period specified under clause (b) of
sub-section (2) and in respect of which a deduction has been claimed and allowed under this section,
the total amount of deduction so claimed and allowed in one or more previous years, shall be
deemed to be the income of the assessee chargeable under the head “Profits and gains of business
or profession” of the previous year in which the period for completion so expires.
(5) Where any amount of profits and gains derived from the business of developing and building
housing projects under any scheme for the housing is claimed and allowed under this section for
any assessment year, deduction to the extent of such profit and gains shall not be allowed under
any other provisions of this Act.
(6) For the purposes of this section,—
40
(a) “built-up area” means the inner measurements of the residential unit at the floor level,
including projections and balconies, as increased by the thickness of the walls, but does not
include the common areas shared with other residential units, including any open terrace
so shared;
(b) “competent authority” means the authority empowered by the Central Government;
(c) “floor area ratio” means the quotient obtained by dividing the total covered area of plinth
area on all the floors by the area of the plot of land;
45
50
(d) “housing project” means a project consisting predominantly of dwelling units with such
other facilities and amenities as the competent authority may specify subject to the provisions of
this section;
(e) “residential unit” means an independent housing unit with separate facilities for living, cooking
and sanitary requirements, distinctly separated from other residential units within the building,
which is directly accessible from an outer door or through and interior door in a shared hallway
and not by walking through the living space of another household.’.
44. For section 80JJAA of the Income-tax Act, the following section shall be substituted with effect Substitution of
new section
from the 1st day of April, 2017, namely:—
for section
80JJAA.
18
Deduction in
respect of
employment
of new
employees.
‘80JJAA. (1) Where the gross total income of an assessee to whom section 44AB applies,
includes any profits and gains derived from business, there shall, subject to the conditions specified
in sub-section (2), be allowed a deduction of an amount equal to thirty per cent. of additional
employee cost incurred in the course of such business in the previous year, for three assessment
years including the assessment year relevant to the previous year in which such employment is
provided.
5
(2) No deduction under sub-section (1) shall be allowed,—
(a) if the business is formed by splitting up, or the reconstruction, of an existing business:
Provided that nothing contained in this clause shall apply in respect of a business which is
formed as a result of re-establishment, reconstruction or revival by the assessee of the business 10
in the circumstances and within the period specified in section 33B;
(b) if the business is acquired by the assessee by way of transfer from any other person or as
a result of any business reorganisation;
(c) unless the assessee furnishes alongwith the return of income the report of the accountant,
as defined in the Explanation to section 288 giving such particulars in the report as may 15
be prescribed.
Explanation.—For the purposes of this section,—
(i) “additional employee cost” means total emoluments paid or payable to additional
employees employed during the previous year:
Provided that in the case of an existing business, the additional employee cost shall 20
be nil, if—
(a) there is no increase in the number of employees from the total number of employees
employed as on the last day of the preceding year;
(b) emoluments are paid otherwise than by an account payee cheque or account payee
bank draft or by use of electronic clearing system through a bank account:
25
Provided further that in the first year of a new business, emoluments paid or payable to
employees employed during that previous year shall be deemed to be the additional
employee cost;
(ii) “additional employee” means an employee who has been employed during the previous
year and whose employment has the effect of increasing the total number of employees 30
employed by the employer as on the last day of the preceding year, but does not include,—
(a) an employee whose total emoluments are more than twenty-five thousand rupees per
month; or
(b) an employee for whom the entire contribution is paid by the Government under the
Employees’ Pension Scheme notified in accordance with the provisions of the Employees’ 35
Provident Funds and Miscellaneous Provisions Act, 1952; or
(c) an employee employed for a period of less than two hundred and forty days during
the previous year; or
(d) an employee who does not participate in the recognised provident fund;
(iii) “emoluments” means any sum paid or payable to an employee in lieu of his employment 40
by whatever name called, but does not include—
(a) any contribution paid or payable by the employer to any pension fund or provident
fund or any other fund for the benefit of the employee under any law for the time being
in force; and
(b) any lump-sum payment paid or payable to an employee at the time of termination of 45
his service or superannuation or voluntary retirement, such as gratuity, severance pay,
leave encashment, voluntary retrenchment benefits, commutation of pension and the like.
Amendment
of section
87A.
(3) The provisions of this section, as they stood immediately prior to their amendment by the
Finance Act, 2016, shall apply to an assessee eligible to claim any deduction for any assessment
year commencing on or before the 1st day of April, 2016.’.
45. In section 87A of the Income-tax Act, for the words “two thousand rupees”, the words “five
thousand rupees” shall be substituted with effect from the 1st day of April, 2017.
50
19 of 1952.
19
46. In section 92CA of the Income-tax Act, in sub-section (3A), the following proviso shall be Amendment
of section
inserted with effect from the 1st day of June, 2016, namely:—
92CA.
5
“Provided that in the circumstances referred to in clause (ii) or clause (viii) of Explanation (1) to
section 153, if the period of limitation available to the Transfer Pricing Officer for making an order is
less than sixty days, such remaining period shall be extended to sixty days and the aforesaid period
of limitation shall be deemed to have been extended accordingly.”.
47. In section 92D of the Income-tax Act, with effect from the 1st day of April, 2017,—
(i) in sub-section (1), the following shall be inserted, namely:—
10
Amendment
of section
92D.
‘Provided that the person, being a constituent entity of an international group, shall also keep
and maintain such information and document in respect of an international group as may
be prescribed.
Explanation.—For the purposes of this section,—
(A) “constituent entity” shall have the meaning assigned to it in clause (d) of sub-section (9)
of section 286;
15
(B) “international group” shall have the meaning assigned to it in clause (g) of
sub-section (9) of section 286.’;
(ii) after sub-section (3), the following sub-section shall be inserted, namely:—
20
“(4) Without prejudice to the provisions of sub-section (3), the person referred to in the proviso
to sub-section (1) shall furnish the information and document referred to in the said proviso to the
authority prescribed under sub-section (1) of section 286, in such manner, on or before the date,
as may be prescribed.”.
48. In section 112 of the Income-tax Act, in sub-section (1), in clause (c), in sub-clause (iii), for the Amendment
words “unlisted securities”, the words “unlisted securities or shares of a company not being a company of section
in which the public are substantially interested” shall be substituted with effect from the 1st day 112.
25 of April, 2017.
49. After section 115B of the Income-tax Act, with effect from the 1st day of April, 2017, the following Insertion of
new section
section shall be inserted, namely:—
115BA.
30
“115BA. (1) Notwithstanding anything contained in this Act but subject to the provisions of section
111A and section 112, the income-tax payable in respect of the total income of a person, being a
domestic company, for any previous year relevant to the assessment year beginning on or after the
1st day of April, 2017, shall, at the option of such person, be computed at the rate of twenty-five per
cent., if the conditions contained in sub-section (2) are satisfied.
(2) For the purposes of sub-section (1), the following conditions shall apply, namely:—
(a) the company has been set-up and registered on or after the 1st day of March, 2016;
35
(b) the company is engaged in the business of manufacturing or production of any article or
thing; and
(c) the total income of the company has been computed,—
40
45
(i) without any deduction under the provisions of section 10AA or clause (iia) of
sub-section (1) of section 32 or section 32AC or section 32AD or section 33AB or section
33ABA or sub-clause (ii) or sub-clause (iia) or sub-clause (iii) of sub-section (1) or sub-section
(2AA) or sub-section (2AB) of section 35 or section 35AC or section 35AD or section 35CCC
or section 35CCD or under any provisions of Chapter VI-A under the heading “C.—Deductions
in respect of certain incomes” other than the provisions of section 80JJAA;
(ii) without set off of any loss carried forward from any earlier assessment year if such loss
is attributable to any of the deductions referred to in sub-clause (i); and
(iii) depreciation under section 32, other than clause (iia) of sub-section (1) of the said
section, is determined in the manner as may be prescribed.
50
(3) The loss referred to in sub-clause (ii) of clause (c) of sub-section (2) shall be deemed to have
been already given full effect to and no further deduction for such loss shall be allowed for any
subsequent year.
(4) The option by the person referred to in sub-section (1) shall be exercised in the prescribed
manner on or before the due date specified under sub-section (1) of section 139 for furnishing the
return of income for the relevant previous year.”.
Tax on
income of
certain
domestic
companies.
20
Insertion of
new section
115 BBDA.
Tax on
certain
dividends
received from
domestic
companies.
50. After section 115BBD of the Income-tax Act, the following section shall be inserted with effect
from the 1st day of April, 2017, namely:—
‘115BBDA. (1) Notwithstanding anything contained in this Act, where the total income of an
assessee, being an individual, Hindu undivided family or a firm, resident in India, includes any
income exceeding ten lakh rupees, by way of dividends declared, distributed or paid by a domestic
company, the income-tax payable shall be the aggregate of—
5
(a) the amount of income-tax calculated on the income by way of such dividends, at the rate of
ten per cent.; and
(b) the amount of income-tax with which the assessee would have been chargeable had the
total income of the assessee been reduced by the amount of income by way of dividends.
10
(2) No deduction in respect of any expenditure or allowance or set off of loss shall be allowed to
the assessee under any provision of this Act in computing the income by way of dividends referred
to in clause (a) of sub-section (1).
(3) In this section, “dividends” shall have the same meaning as is given to “dividend” in clause
(22) of section 2 but shall not include sub-clause (e) thereof.’.
15
Amendment
of section
115BBE.
Insertion of
new section
115BBF.
Tax on
income from
patent.
51. In section 115BBE of the Income-tax Act, in sub-section (2), after the word “allowance”, the
words “or set off of any loss” shall be inserted with effect from the 1st day of April, 2017.
52. After section 115BBE of the Income-tax Act, the following section shall be inserted with effect
from the 1st day of April, 2017, namely:—
‘115BBF. (1) Where the total income of an eligible assessee includes any income by way of 20
royalty in respect of a patent developed and registered in India, the income-tax payable shall be the
aggregate of—
(a) the amount of income-tax calculated on the income by way of royalty in respect of the
patent at the rate of ten per cent.; and
(b) the amount of income-tax with which the assessee would have been chargeable had his 25
total income been reduced by the income referred to in clause (a).
(2) Notwithstanding anything contained in this Act, no deduction in respect of any expenditure or
allowance shall be allowed to the eligible assessee under any provision of this Act in computing his
income referred to in clause (a) of sub-section (1).
Explanation.—For the purposes of this section,—
30
(a) “developed” means the expenditure incurred by the assessee for any invention in respect of
which patent is granted under the Patents Act, 1970 (herein referred to as the Patents Act);
39 of 1970.
(b) “eligible assessee” means a person resident in India and who is a patentee;
(c) “invention” shall have the meaning assigned to it in clause (j) of sub-section (1) of section 2 of
the Patents Act;
35
(d) “lump sum” includes an advance payment on account of such royalties which is not returnable;
(e) “patent” shall have the meaning assigned to it in clause (m) of sub-section (1) of section 2 of
the Patents Act;
(f) “patentee” means the person, being the true and first inventor of the invention, whose name is
entered on the patent register as the patentee, in accordance with the Patents Act, and includes 40
every such person, being the true and first inventor of the invention, where more than one person is
registered as patentee under that Act in respect of that patent;
(g) “patented article” and “patented process” shall have the meanings respectively assigned to
them in clause (o) of sub-section (1) of section 2 of the Patents Act;
(h) “royalty”, in respect of a patent, means consideration (including any lump sum consideration 45
but excluding any consideration which would be the income of the recipient chargeable under the
head “Capital gains” or consideration for sale of product manufactured with the use of patented
process or the patented article for commercial use) for the—
(i) transfer of all or any rights (including the granting of a licence) in respect of a patent; or
(ii) imparting of any information concerning the working of, or the use of, a patent; or
50
21
(iii) use of any patent; or
(iv) rendering of any services in connection with the activities referred to in
sub-clauses (i) to (iii);
5
(i) “true and first inventor” shall have the meaning assigned to it in clause (y) of sub-section (1) of
section 2 of the Patents Act.’.
53. In section 115JB of the Income-tax Act,—
(I) after sub-section (2),—
(a) in Explanation 1, with effect from the 1st day of April, 2017,—
(i) after clause (fc), the following clause shall be inserted, namely:—
10
“(fd) the amount or amounts of expenditure relatable to income by way of royalty in
respect of patent chargeable to tax under section 115BBF; or”;
(ii) in the long line,—
(A) in clause (iif), for the words “may be;” occurring at the end, the words “may be; or”
shall be substituted;
15
(B) after clause (iif), the following clause shall be inserted, namely:—
“(iig) the amount of income by way of royalty in respect of patent chargeable to tax
under section 115BBF;”;
20
(b) Explanation 4 shall be renumbered as Explanation 5 thereof and before Explanation 5 as
so renumbered, the following Explanation shall be inserted and shall be deemed to have been
inserted with effect from the 1st day of April, 2001, namely:—
“Explanation 4.—For the removal of doubts, it is hereby clarified that the provisions of this
section shall not be applicable and shall be deemed never to have been applicable to an
assessee, being a foreign company, if—
25
30
(i) the assessee is a resident of a country or a specified territory with which India has
an agreement referred to in sub-section (1) of section 90 or the Central Government has
adopted any agreement under sub-section (1) of section 90A and the assessee does not
have a permanent establishment in India in accordance with the provisions of such
agreement; or
(ii) the assessee is a resident of a country with which India does not have an agreement
of the nature referred to in clause (i) and the assessee is not required to seek registration
under any law for the time being in force relating to companies.”;
(II) after sub-section (6), the following sub-section shall be inserted with effect from the 1st day of
April, 2017, namely:—
35
‘(7) Notwithstanding anything contained in sub-section (1), where the assessee referred to
therein, is a unit located in an International Financial Services Center and derives its income
solely in convertible foreign exchange, the provisions of sub-section (1) shall have the effect as if
for the words “eighteen and one-half per cent.” wherever occurring in that sub-section, the words
“nine per cent.” had been substituted.
Explanation.—For the purposes of this sub-section,—
40
28 of 2005.
(a) “International Financial Services Centre” shall have the same meaning as assigned to
it in clause (q) of section 2 of the Special Economic Zones Act, 2005;
(b) “unit” means a unit established in an International Financial Services Centre, on or after
the 1st day of April, 2016;
45
42 of 1999.
(c) “convertible foreign exchange” means a foreign exchange which is for the time being
treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the
Foreign Exchange Management Act, 1999 and the rules made thereunder.’.
Amendment
of section
115JB.
22
Insertion of
new Chapter
XII-BC.
54. After Chapter XII-BB of the Income-tax Act, the following Chapter shall be inserted with effect
from the 1st day of April, 2017, namely:—
“CHAPTER XII-BC
SPECIAL PROVISIONS RELATING TO FOREIGN COMPANY
SAID TO BE RESIDENT IN INDIA
Foreign
company said
to be resident
in India.
5
115JH. (1) Where a foreign company is said to be resident in India in any previous year and such
foreign company has not been resident in India in any of the previous years preceding the said
previous year, then, notwithstanding anything contained in this Act and subject to the conditions as
may be notified by the Central Government in this behalf, the provisions of this Act relating to the
computation of total income, treatment of unabsorbed depreciation, set off or carry forward and set 10
off of losses, collection and recovery and special provisions relating to avoidance of tax shall apply
with such exceptions, modifications and adaptations as may be specified in that notification for the
said previous year:
Provided that where the determination regarding foreign company to be resident in India has
been made in the assessment proceedings relevant to any previous year, then, the provisions of 15
this sub-section shall also apply in respect of any other previous year, succeeding such previous
year, if the foreign company is resident in India in that previous year and the previous year ends on
or before the date on which such assessment proceeding is completed.
(2) Where, in a previous year, any benefit, exemption or relief has been claimed and granted to
the foreign company in accordance with the provisions of sub-section (1), and, subsequently, there 20
is failure to comply with any of the conditions specified in the notification issued under
sub-section (1), then,—
(i) such benefit, exemption or relief shall be deemed to have been wrongly allowed;
(ii) the Assessing Officer may, notwithstanding anything contained in this Act, re-compute the
total income of the assessee for the said previous year and make the necessary amendment as 25
if the exceptions, modifications and adaptations referred to in sub-section (1) did not apply; and
(iii) the provisions of section 154 shall, so far as may be, apply thereto and the period of four
years specified in sub-section (7) of that section being reckoned from the end of the previous
year in which the failure to comply with the condition referred to in sub-section (1) takes place.
(3) Every notification issued under this section shall be laid before each House of Parliament.”.
Amendment
of section
115-O.
30
55. In section 115-O of the Income-tax Act,—
(a) after sub-section (6), the following sub-section shall be inserted, with effect from the 1st day of
June, 2016, namely:—
‘(7) No tax on distributed profits shall be chargeable under this section in respect of any
amount declared, distributed or paid by the specified domestic company by way of dividends 35
(whether interim or otherwise) to a business trust out of its current income on or after the
specified date:
Provided that nothing contained in this sub-section shall apply in respect of any amount
declared, distributed or paid, at any time, by the specified domestic company by way of dividends
(whether interim or otherwise) out of its accumulated profits and current profits up to the 40
specified date.
Explanation.—For the purposes of this sub-section,—
(a) “specified domestic company” means a domestic company in which a business trust has
become the holder of whole of the nominal value of equity share capital of the company
(excluding the equity share capital required to be held mandatorily by any other person in 45
accordance with any law for the time being in force or any directions of Government or any
regulatory authority, or equity share capital held by any Government or Government body);
(b) “specified date” means the date of acquisition by the business trust of such holding as
is referred to in clause (a).’;
(b) after sub-section (7) as so inserted, the following sub-section shall be inserted with effect from 50
the 1st day of April, 2017, namely:—
‘(8) Notwithstanding anything contained in this section, no tax on distributed profits shall be
chargeable in respect of the total income of a company, being a unit of an International Financial
Services Centre, deriving income solely in convertible foreign exchange, for any assessment
year on any amount declared, distributed or paid by such company, by way of dividends (whether 55
23
interim or otherwise) on or after the 1st day of April, 2017, out of its current income, either in the
hands of the company or the person receiving such dividend.
Explanation.—For the purposes of this sub-section,—
28 of 2005.
5
(a) “International Financial Services Centre” shall have the same meaning as assigned to it
in clause (q) of section 2 of the Special Economic Zones Act, 2005;
(b) “unit” means a unit established in an International Financial Services Centre, on or after
the 1st day of April, 2016;
42 of 1999.
10
(c) “convertible foreign exchange” means foreign exchange which is for the time being
treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the
Foreign Exchange Management Act, 1999 and the rules made thereunder.’.
56. In section 115QA of the Income-tax Act, in sub-section (1), in the Explanation, with effect from Amendment
of section
the 1st day of June, 2016,—
115QA.
(a) in clause (i), for the words, figures and letter “section 77A of the Companies Act, 1956”, the
words “any law for the time being in force relating to companies” shall be substituted;
15
(b) in clause (ii), for the words “the amount which was received by the company for issue of such
shares”, the words “the amount, which was received by the company for issue of such shares,
determined in the manner as may be prescribed” shall be substituted.
57. In section 115TA of the Income-tax Act, after sub-section (4), the following sub-section shall be Amendment
of section
inserted with effect from the 1st day of June, 2016, namely:—
115TA.
20
“(5) Nothing contained in this section shall apply in respect of any income distributed by a
securitisation trust to its investors on or after the 1st day of June, 2016.”.
58. In section 115TC of the Income-tax Act, in the Explanation, with effect from the 1st day of Amendment
of section
June, 2016,—
115TC.
(A) in clause (a), after the words “or securities”, the words “or security receipt” shall be inserted;
25
(B) in clause (d),—
(I) in sub-clause (ii), after the words “ Reserve Bank of India,”, the word “;or” shall be inserted;
(II) after sub-clause (ii) and before the long line, the following sub-clause shall be inserted,
namely:—
30
54 of 2002.
“(iii) trust set-up by a securitisation company or a reconstruction company formed, for the
purposes of the Securitisation and Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002, or in pursuance of any guidelines or directions issued for the said
purposes by the Reserve Bank of India,”;
(C) after clause (d), the following clause shall be inserted, namely:—
35
54 of 2002.
‘(e) “security receipt” shall have the same meaning as assigned to it in clause (zg) of
sub-section (1) of section 2 of the Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002.’.
59. After section 115TC of the Income-tax Act and before the Explanation occurring after the said Insertion of
section, the following section shall be inserted with effect from the 1st day of April, 2017, namely:— new section
40
45
50
“115TCA. (1) Notwithstanding anything contained in this Act, any income accruing or arising to,
or received by, a person, being an investor of a securitisation trust, out of investments made in the
securitisation trust, shall be chargeable to income-tax in the same manner as if it were the income
accruing or arising to, or received by, such person, had the investments by the securitisation trust
been made directly by him.
(2) The income paid or credited by the securitisation trust shall be deemed to be of the same
nature and in the same proportion in the hands of the person referred to in sub-section (1), as if it
had been received by, or had accrued or arisen to, the securitisation trust during the previous year.
(3) The income accruing or arising to, or received by, the securitisation trust, during a previous
year, if not paid or credited to the person referred to in sub-section (1), shall be deemed to have
been credited to the account of the said person on the last day of the previous year in the same
proportion in which such person would have been entitled to receive the income had it been paid in
the previous year.
(4) The person responsible for crediting or making payment of the income on behalf of securitisation
trust and the securitisation trust shall furnish, within such period, as may be prescribed, to the
115TCA.
Tax on income
from
securitisation
trusts.
24
person who is liable to tax in respect of such income and to the prescribed income-tax authority, a
statement in such form and verified in such manner, giving details of the nature of the income paid
or credited during the previous year and such other relevant details, as may be prescribed.
(5) Any income which has been included in the total income of the person referred to in
sub-section (1), in a previous year, on account of it having accrued or arisen in the said previous
year, shall not be included in the total income of such person in the previous year in which such
income is actually paid to him by the securitisation trust.”.
Insertion of
new Chapter
XII-EB.
5
60. After Chapter XII-EA of the Income-tax Act, the following Chapter shall be inserted with effect
from the 1st day of June, 2016, namely:—
‘CHAPTER XII-EB
10
SPECIAL PROVISIONS RELATING TO TAX ON ACCRETED INCOME OF CERTAIN
TRUSTS AND INSTITUTIONS
Tax on
accreted
income.
115TD. (1) Notwithstanding anything contained in this Act, where in any previous year, a trust or
institution registered under section 12AA has—
(a) converted into any form which is not eligible for grant of registration under section 12AA;
15
(b) merged with any entity other than an entity which is a trust or institution having objects
similar to it and registered under section 12AA; or
(c) failed to transfer upon dissolution all its assets to any other trust or institution registered
under section 12AA or to any fund or institution or trust or any university or other educational
institution or any hospital or other medical institution referred to in sub-clause (iv) or 20
sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10, within a period
of twelve months from the end of the month in which the dissolution takes place,
then, in addition to the income-tax chargeable in respect of the total income of such trust or institution,
the accreted income of the trust or the institution as on the specified date shall be charged to tax and
such trust or institution, as the case may be, shall be liable to pay additional income-tax (herein referred 25
to as tax on accreted income) at the maximum marginal rate on the accreted income.
(2) The accreted income for the purposes of sub-section (1) means the amount by which the
aggregate fair market value of the total assets of the trust or the institution, as on the specified date,
exceeds the total liability of such trust or institution computed in accordance with the method of
valuation as may be prescribed:
30
Provided that while computing the accreted income in respect of a case referred to in clause (c)
of sub-section (1), assets and liabilities, if any, related to such asset, which have been transferred to
any other trust or institution registered under section 12AA or to any fund or institution or trust or any
university or other educational institution or any hospital or other medical institution referred to in
sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10, 35
within the period specified in the said clause, shall be ignored.
(3) For the purposes of sub-section (1), a trust or an institution shall be deemed to have been
converted into any form not eligible for registration under section 12AA in a previous year, if,—
(i) the registration granted to it under section 12AA has been cancelled; or
(ii) it has adopted or undertaken modification of its objects which do not conform to the conditions 40
of registration and it,—
(a) has not applied for fresh registration under section 12AA in the said previous year; or
(b) has filed application for fresh registration under section 12AA but the said application
has been rejected.
(4) Notwithstanding that no income-tax is payable by a trust or the institution on its total income 45
computed in accordance with the provisions of this Act, the tax on the accreted income under
sub-section (1) shall be payable by such trust or the institution.
(5) The principal officer or the trustee of the trust or the institution, as the case may be, and the
trust or the institution shall also be liable to pay the tax on accreted income to the credit of the
Central Government within fourteen days from,—
50
(i) the date on which the order cancelling the registration is received by the trust or the institution
in a case referred to in clause (i) of sub-section (3);
(ii) the end of the previous year in a case referred to in sub-clause (a) of clause (ii) of
sub-section (3);
25
(iii) the date on which the order rejecting the application is received by the trust or the institution
in a case referred to in sub-clause (b) of clause (ii) of sub-section (3);
(iv) the date of merger in a case referred to in clause (b) of sub-section (1);
5
(v) the date on which the period of twelve months referred to in clause (c) of sub-section (1)
expires.
(6) The tax on the accreted income by the trust or the institution shall be treated as the final
payment of tax in respect of the said income and no further credit therefor shall be claimed by the
trust or the institution or by any other person in respect of the amount of tax so paid.
10
(7) No deduction under any other provision of this Act shall be allowed to the trust or the institution
or any other person in respect of the income which has been charged to tax under sub-section (1) or
the tax thereon.
Explanation.—For the purposes of this section,—
(i) “date of conversion” means,—
15
(a) the date of the order cancelling the registration under section 12AA, in a case referred
to in clause (i) of sub-section (3); or
(b) the date of adoption or modification of any object, in a case referred to in clause (ii) of
sub-section (3);
(ii) “specified date” means,—
(a) the date of conversion in a case falling under clause (a) of sub-section (1);
20
(b) the date of merger in a case falling under clause (b) of sub-section (1); and
(c) the date of dissolution in a case falling under clause (c) of sub-section (1).
25
30
115TE. Where the principal officer or the trustee of the trust or the institution and the trust or the
institution fails to pay the whole or any part of the tax on the accreted income referred to in
sub-section (1) of section 115TD, within the time allowed under sub-section (5) of that section, he or
it shall be liable to pay simple interest at the rate of one per cent. for every month or part thereof on
the amount of such tax for the period beginning on the date immediately after the last date on which
such tax was payable and ending with the date on which the tax is actually paid.
Interest
payable for
non-payment
of tax by trust
or institution.
115TF. (1) If any principal officer or the trustee of the trust or the institution and the trust or the
institution does not pay tax on accreted income in accordance with the provisions of
section 115TD, then, he or it shall be deemed to be an assessee in default in respect of the
amount of tax payable by him or it and all the provisions of this Act for the collection and recovery
of income-tax shall apply.
When trust or
institution is
deemed to be
assessee in
default.
(2) Notwithstanding anything contained in sub-section (1), in a case where the tax on accreted
income is payable under the circumstances referred to in clause (c) of sub-section (1) of
35 section 115TD, the person to whom any asset forming part of the computation of accreted income
under sub-section (2) thereof has been transferred, shall be deemed to be an assessee in default in
respect of such tax and interest thereon and all the provisions of this Act for the collection and recovery
of income-tax shall apply:
Provided that the liability of the person referred to in this sub-section shall be limited to the extent to
40 which the asset received by him is capable of meeting the liability.’.
61. In section 115UA of the Income-tax Act, in sub-section (3), for the words, brackets, figures and Amendment
letters “in clause (23FC)”, the words, brackets, letters and figures “in sub-clause (a) of clause (23FC)” of section
115UA.
shall be substituted with effect from the 1st day of April, 2017.
62. In section 119 of the Income-tax Act, in sub-section (2), in clause (a), after the figures and letter Amendment
of section
45 “234E”, the figures and letter “270A,” shall be inserted with effect from the 1st day of April, 2017.
119.
63. In section 124 of the Income-tax Act, in sub-section (3), after clause (b), the following clause Amendment
of section
shall be inserted with effect from the 1st day of June, 2016, namely:—
124.
50
“(c) where an action has been taken under section 132 or section 132A, after the expiry of one
month from the date on which he was served with a notice under sub-section (1) of section 153A or
sub-section (2) of section 153C or after the completion of the assessment, whichever is earlier.”.
64. Section 133C of the Income-tax Act shall be renumbered as sub-section (1) thereof and after Amendment
sub-section (1) as so renumbered, the following sub-section shall be inserted with effect from the of section
133C.
1st day of June, 2016, namely:—
26
“(2) Where any information or document has been received in response to a notice issued under
sub-section (1), the prescribed income-tax authority may process such information or document
and make available the outcome of such processing to the Assessing Officer.”.
Amendment
of section
139.
65. In section 139 of the Income-tax Act,—
(i) in sub-section (1), in the sixth proviso, for the words, figures and letter “provisions of section
10A”, the words, brackets, figures and letter “provisions of clause (38) of section 10 or section 10A”
shall be substituted with effect from the 1st day of April, 2017;
5
(ii) in sub-section (3), after the words, brackets and figures “sub-section (2) of section 73”, the
words, brackets, figures and letter “or sub-section (2) of section 73A” shall be inserted;
(iii) with effect from the 1st day of April, 2017,—
10
(a) for sub-section (4), the following sub-section shall be substituted, namely:—
“(4) Any person who has not furnished a return within the time allowed to him under
sub-section (1), may furnish the return for any previous year at any time before the end of the
relevant assessment year or before the completion of the assessment, whichever is earlier.”;
(b) for sub-section (5), the following sub-section shall be substituted, namely:—
15
“(5) If any person, having furnished a return under sub-section (1) or sub-section (4), discovers
any omission or any wrong statement therein, he may furnish a revised return at any time
before the expiry of one year from the end of the relevant assessment year or before the
completion of the assessment, whichever is earlier.”;
(c) in sub-section (9), in the Explanation, clause (aa) shall be omitted.
Amendment
of section
143.
20
66. In section 143 of the Income-tax Act,—
(a) with effect from the 1st day of April, 2017,—
(I) in sub-section (1), in clause (a),—
(A) in sub-clause (i), the word “or” appearing at the end shall be omitted;
(B) after sub-clause (ii), the following sub-clauses shall be inserted, namely:—
25
“(iii) disallowance of loss claimed, if return of the previous year for which set off of loss
is claimed was furnished beyond the due date specified under sub-section (1) of
section 139;
(iv) disallowance of expenditure indicated in the audit report but not taken into account in
30
computing the total income in the return;
(v) disallowance of deduction claimed under sections 10AA, 80-IA, 80-IAB, 80-IB, 80-IC,
80-ID or section 80-IE, if the return is furnished beyond the due date specified under
sub-section (1) of section 139; or
(vi) addition of income appearing in Form 26AS or Form 16A or Form 16 which has not
been included in computing the total income in the return:
35
Provided that no such adjustments shall be made unless an intimation is given to the
assessee of such adjustments either in writing or in electronic mode:
Provided further that the response received from the assessee, if any, shall be considered
before making any adjustment, and in a case where no response is received within thirty
days of the issue of such intimation, such adjustments shall be made;”;
40
(II) in sub-section (1D), the following proviso shall be inserted, namely:—
“Provided that such return shall be processed before the issuance of an order under
sub-section (3).”;
(b) for sub-section (2), the following sub-section shall be substituted with effect from the 1st day
45
of June, 2016, namely:—
“(2) Where a return has been furnished under section 139, or in response to a notice under
sub-section (1) of section 142, the Assessing Officer or the prescribed income-tax authority, as
the case may be, if, considers it necessary or expedient to ensure that the assessee has not
understated the income or has not computed excessive loss or has not under-paid the tax in any
manner, shall serve on the assessee a notice requiring him, on a date to be specified therein, 50
either to attend the office of the Assessing Officer or to produce, or cause to be produced before
the Assessing Officer any evidence on which the assessee may rely in support of the return:
27
Provided that no notice under this sub-section shall be served on the assessee after the expiry
of six months from the end of the financial year in which the return is furnished.”.
67. In section 147 of the Income-tax Act, in Explanation 2, after clause (c), the following clause shall Amendment
of section
be inserted with effect from the 1st day of June, 2016, namely:—
147.
5
10
“(ca) where a return of income has not been furnished by the assessee or a return of income has
been furnished by him and on the basis of information or document received from the prescribed
income-tax authority, under sub-section (2) of section 133C, it is noticed by the Assessing Officer
that the income of the assessee exceeds the maximum amount not chargeable to tax, or as the
case may be, the assessee has understated the income or has claimed excessive loss, deduction,
allowance or relief in the return;”.
68. For section 153 of the Income-tax Act, the following section shall be substituted with effect from Substitution of
new section
1st day of June, 2016, namely:—
15
“153. (1) No order of assessment shall be made under section 143 or section 144 at any time
after the expiry of twenty-one months from the end of the assessment year in which the income was
first assessable.
(2) No order of assessment, reassessment or recomputation shall be made under section 147
after the expiry of nine months from the end of the financial year in which the notice under section
148 was served.
20
25
(3) Notwithstanding anything contained in sub-sections (1) and (2), an order of fresh
assessment in pursuance of an order under section 254 or section 263 or section 264, setting
aside or cancelling an assessment, may be made at any time before the expiry of nine months
from the end of the financial year in which the order under section 254 is received by the Principal
Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner or, as
the case may be, the order under section 263 or section 264 is passed by the Principal
Commissioner or Commissioner.
(4) Notwithstanding anything contained in sub-sections (1), (2) and (3), where a reference under
sub-section (1) of section 92CA is made during the course of the proceeding for the assessment or
reassessment, the period available for completion of assessment or reassessment, as the case
may be, under the said sub-sections (1), (2) and (3) shall be extended by twelve months.
30
35
40
(5) Where effect to an order under section 250 or section 254 or section 260 or section 262 or
section 263 or section 264 is to be given by the Assessing Officer, wholly or partly, otherwise than
by making a fresh assessment or reassessment, such effect shall be given within a period of three
months from the end of the month in which order under section 250 or section 254 or section 260 or
section 262 is received by the Principal Chief Commissioner or Chief Commissioner or Principal
Commissioner or Commissioner, as the case may be, the order under section 263 or section 264 is
passed by the Principal Commissioner or Commissioner:
Provided that where it is not possible for the Assessing Officer to give effect to such order within
the aforesaid period, for reasons beyond his control, the Principal Commissioner or Commissioner
on receipt of such request in writing from the Assessing Officer, if satisfied, may allow an additional
period of six months to give effect to the order.
(6) Nothing contained in sub-sections (1) and (2) shall apply to the following classes of
assessments, reassessments and recomputation which may, subject to the provisions of sub-sections
(3) and (5), be completed—
45
50
55
60
(i) where the assessment, reassessment or recomputation is made on the assessee or any
person in consequence of or to give effect to any finding or direction contained in an order under
section 250, section 254, section 260, section 262, section 263, or section 264 or in an order of
any court in a proceeding otherwise than by way of appeal or reference under this Act, on or
before the expiry of twelve months from the end of the month in which such order is received or
passed by the Principal Commissioner or Commissioner, as the case may be; or
(ii) where, in the case of a firm, an assessment is made on a partner of the firm in consequence
of an assessment made on the firm under section 147, on or before the expiry of twelve months
from the end of the month in which the assessment order in the case of the firm is passed.
(7) Where effect to any order, finding or direction referred to in sub-section (5) or sub-section (6)
is to be given by the Assessing Officer, within the time specified in the said sub-sections, and such
order has been received or passed, as the case may be, by the income-tax authority specified
therein before the 1st day of June, 2016, the Assessing Officer shall give effect to such order,
finding or direction, or assess, reassess or recompute the income of the assessee, on or before the
31st day of March, 2017.
(8) Notwithstanding anything contained in the foregoing provisions of this section, sub-section
(2) of section 153A or sub-section (1) of section 153B, the order of assessment or reassessment,
relating to any assessment year, which stands revived under sub-section (2) of section 153A, shall
be made within a period of one year from the end of the month of such revival or within the period
specified in this section or sub-section (1) of section 153B, whichever is later.
for section
153.
Time limit for
completion of
assessment,
reassessment
and
recomputation.
28
(9) The provisions of this section as they stood immediately before the commencement of the
Finance Act, 2016, shall apply to and in relation to any order of assessment, reassessment or
recomputation made before the 1st day of June, 2016.
Explanation 1.—For the purposes of this section, in computing the period of limitation—
(i) the time taken in reopening the whole or any part of the proceeding or in giving an opportunity
to the assessee to be re-heard under the proviso to section 129; or
5
(ii) the period during which the assessment proceeding is stayed by an order or injunction of
any court; or
(iii) the period commencing from the date on which the Assessing Officer intimates the Central
Government or the prescribed authority, the contravention of the provisions of clause (21) or 10
clause (22B) or clause (23A) or clause (23B) or sub-clause (iv) or sub-clause (v) or
sub-clause (vi) or sub-clause (via) of clause (23C) of section 10, under clause (i) of the proviso to
sub-section (3) of section 143 and ending with the date on which the copy of the order withdrawing
the approval or rescinding the notification, as the case may be, under those clauses is received
by the Assessing Officer; or
15
(iv) the period commencing from the date on which the Assessing Officer directs the assessee
to get his accounts audited under sub-section (2A) of section 142 and—
(a) ending with the last date on which the assessee is required to furnish a report of such
audit under that sub-section; or
(b) where such direction is challenged before a court, ending with the date on which the order 20
setting aside such direction is received by the Principal Commissioner or Commissioner; or
(v) the period commencing from the date on which the Assessing Officer makes a reference to
the Valuation Officer under sub-section (1) of section 142A and ending with the date on which the
report of the Valuation Officer is received by the Assessing Officer; or
(vi) the period (not exceeding sixty days) commencing from the date on which the Assessing 25
Officer received the declaration under sub-section (1) of section 158A and ending with the date
on which the order under sub-section (3) of that section is made by him; or
(vii) in a case where an application made before the Income-tax Settlement Commission is
rejected by it or is not allowed to be proceeded with by it, the period commencing from the date on
which an application is made before the Settlement Commission under section 245C and ending 30
with the date on which the order under sub-section (1) of section 245D is received by the Principal
Commissioner or Commissioner under sub-section (2) of that section; or
(viii) the period commencing from the date on which an application is made before the Authority
for Advance Rulings under sub-section (1) of section 245Q and ending with the date on which the
order rejecting the application is received by the Principal Commissioner or Commissioner under 35
sub-section (3) of section 245R; or
(ix) the period commencing from the date on which an application is made before the Authority
for Advance Rulings under sub-section (1) of section 245Q and ending with the date on which the
advance ruling pronounced by it is received by the Principal Commissioner or Commissioner
under sub-section (7) of section 245R; or
40
(x) the period commencing from the date on which a reference or first of the references for
exchange of information is made by an authority competent under an agreement referred to in
section 90 or section 90A and ending with the date on which the information requested is last
received by the Principal Commissioner or Commissioner or a period of one year, whichever is
45
less; or
(xi) the period commencing from the date on which a reference for declaration of an arrangement
to be an impermissible avoidance arrangement is received by the Principal Commissioner or
Commissioner under sub-section (1) of section 144BA and ending on the date on which a direction
under sub-section (3) or sub-section (6) or an order under sub-section (5) of the said section is
received by the Assessing Officer,
50
shall be excluded:
Provided that where immediately after the exclusion of the aforesaid period, the period of limitation
referred to in sub-sections (1), (2), (3) and sub-section (8) available to the Assessing Officer for making
an order of assessment, reassessment or recomputation, as the case may be, is less than sixty days,
such remaining period shall be extended to sixty days and the aforesaid period of limitation shall be 55
deemed to be extended accordingly:
Provided further that where the period available to the Transfer Pricing Officer is extended to sixty
days in accordance with the proviso to sub-section (3A) of section 92CA and the period of limitation
29
available to the Assessing Officer for making an order of assessment, reassessment or recomputation,
as the case may be, is less than sixty days, such remaining period shall be extended to sixty days and
the aforesaid period of limitation shall be deemed to be extended accordingly:
Provided also that where a proceeding before the Settlement Commission abates under section
245HA, the period of limitation available under this section to the Assessing Officer for making an
order of assessment, reassessment or recomputation, as the case may be, shall, after the exclusion
of the period under sub-section (4) of section 245HA, be not less than one year; and where such
period of limitation is less than one year, it shall be deemed to have been extended to one year; and
for the purposes of determining the period of limitation under sections 149, 153B, 154, 155 and
10 158BE and for the purposes of payment of interest under section 244A, this proviso shall also
apply accordingly.
5
Explanation 2.—For the purposes of this section, where, by an order referred to in clause (i) of
sub-section (6),—
15
20
(a) any income is excluded from the total income of the assessee for an assessment year, then,
an assessment of such income for another assessment year shall, for the purposes of section 150
and this section, be deemed to be one made in consequence of or to give effect to any finding or
direction contained in the said order; or
(b) any income is excluded from the total income of one person and held to be the income of
another person, then, an assessment of such income on such other person shall, for the purposes
of section 150 and this section, be deemed to be one made in consequence of or to give effect to
any finding or direction contained in the said order, if such other person was given an opportunity of
being heard before the said order was passed.”.
69. For section 153B of the Income-tax Act, the following section shall be substituted with effect Substitution of
new section
from the 1st day of June, 2016, namely:—
25
30
for section
153B.
‘153B. (1) Notwithstanding anything contained in section 153, the Assessing Officer shall make Time limit for
completion of
an order of assessment or reassessment,—
assessment
(a) in respect of each assessment year falling within six assessment years referred to in under section
153A.
clause (b) of sub-section (1) of section 153A, within a period of twenty-one months from the end
of the financial year in which the last of the authorisations for search under section 132 or for
requisition under section 132A was executed;
(b) in respect of the assessment year relevant to the previous year in which search is conducted
under section 132 or requisition is made under section 132A, within a period of twenty-one months
from the end of the financial year in which the last of the authorisations for search under section
132 or for requisition under section 132A was executed:
35
Provided that in case of other person referred to in section 153C, the period of limitation for
making the assessment or reassessment shall be the period as referred to in clause (a) or
clause (b) of this sub-section or nine months from the end of the financial year in which books of
account or documents or assets seized or requisitioned are handed over under section 153C to the
Assessing Officer having jurisdiction over such other person, whichever is later:
40
Provided further that in case where the last of the authorisations for search under section 132 or
for requisition under section 132A was executed and during the course of the proceedings for the
assessment or reassessment of total income, a reference under sub-section (1) of section 92CA is
made, the provisions of clause (a) or clause (b) of this sub-section shall have effect as if for the
words “twenty-one months”, the words “thirty-three months” had been substituted:
45
Provided also that in case where during the course of the proceedings for the assessment or
reassessment of total income in case of other person referred to in section 153C, a reference
under sub-section (1) of section 92CA is made, the period of limitation for making the assessment
or reassessment in case of such other person shall be the period of thirty-three months from the
end of the financial year in which the last of the authorisations for search under section 132 or for
requisition under section 132A was executed or twenty-one months from the end of the financial
year in which books of account or documents or assets seized or requisitioned are handed over
under section 153C to the Assessing Officer having jurisdiction over such other person, whichever
is later.
50
55
(2) The authorisation referred to in clause (a) and clause (b) of sub-section (1) shall be deemed
to have been executed,—
(a) in the case of search, on the conclusion of search as recorded in the last panchnama
drawn in relation to any person in whose case the warrant of authorisation has been
issued; or
30
(b) in the case of requisition under section 132A, on the actual receipt of the books of account
or other documents or assets by the Authorised Officer.
(3) The provisions of this section, as they stood immediately before the commencement of the
Finance Act, 2016, shall apply to and in relation to any order of assessment or reassessment made
before the 1st day of June, 2016.
5
Explanation.—In computing the period of limitation under this section—
(i) the period during which the assessment proceeding is stayed by an order or injunction of
any court; or
(ii) the period commencing from the date on which the Assessing Officer directs the assessee
10
to get his accounts audited under sub-section (2A) of section 142 and—
(a) ending with the last date on which the assessee is required to furnish a report of such
audit under that sub-section; or
(b) where such direction is challenged before a court, ending with the date on which the order
setting aside such direction is received by the Principal Commissioner or Commissioner; or
(iii) the period commencing from the date on which the Assessing Officer makes a reference to 15
the Valuation Officer under sub-section (1) of section 142A and ending with the date on which the
report of the Valuation Officer is received by the Assessing Officer; or
(iv) the time taken in re-opening the whole or any part of the proceeding or in giving an opportunity
to the assessee of being re-heard under the proviso to section 129; or
(v) in a case where an application made before the Income-tax Settlement Commission is 20
rejected by it or is not allowed to be proceeded with by it, the period commencing from the date on
which an application is made before the Settlement Commission under section 245C and ending
with the date on which the order under sub-section (1) of section 245D is received by the Principal
Commissioner or Commissioner under sub-section (2) of that section; or
(vi) the period commencing from the date on which an application is made before the Authority 25
for Advance Rulings under sub-section (1) of section 245Q and ending with the date on which the
order rejecting the application is received by the Principal Commissioner or Commissioner under
sub-section (3) of section 245R; or
(vii) the period commencing from the date on which an application is made before the Authority
for Advance Rulings under sub-section (1) of section 245Q and ending with the date on which the 30
advance ruling pronounced by it is received by the Principal Commissioner or Commissioner
under sub-section (7) of section 245R; or
(viii) the period commencing from the date of annulment of a proceeding or order of
assessment or reassessment referred to in sub-section (2) of section 153A, till the date of the
receipt of the order setting aside the order of such annulment, by the Principal Commissioner 35
or Commissioner; or
(ix) the period commencing from the date on which a reference or first of the references for
exchange of information is made by an authority competent under an agreement referred to in
section 90 or section 90A and ending with the date on which the information requested is last
received by the Principal Commissioner or Commissioner or a period of one year, whichever is 40
less; or
(x) the period commencing from the date on which a reference for declaration of an arrangement
to be an impermissible avoidance arrangement is received by the Principal Commissioner or
Commissioner under sub-section (1) of section 144BA and ending on the date on which a direction
under sub-section (3) or sub-section (6) or an order under sub-section (5) of the said section is 45
received by the Assessing Officer,
shall be excluded:
Provided that where immediately after the exclusion of the aforesaid period, the period of limitation
referred to in clause (a) or clause (b) of this sub-section available to the Assessing Officer for
making an order of assessment or reassessment, as the case may be, is less than sixty days, such 50
remaining period shall be extended to sixty days and the aforesaid period of limitation shall be
deemed to be extended accordingly:
Provided further that where the period available to the Transfer Pricing Officer is extended to
sixty days in accordance with the proviso to sub-section (3A) of section 92CA and the period of
limitation available to the Assessing Officer for making an order of assessment or reassessment, as 55
the case may be, is less than sixty days, such remaining period shall be extended to sixty days and
the aforesaid period of limitation shall be deemed to be extended accordingly.’.
31
70. In section 192A of the Income-tax Act, in the first proviso, for the words “thirty thousand rupees”, Amendment
of section
the words “fifty thousand rupees” shall be substituted with effect from the 1st day of June, 2016.
192A.
71. In section 194BB of the Income-tax Act, for the words “five thousand rupees”, the words “ten Amendment
of section
thousand rupees” shall be substituted with effect from the 1st day of June, 2016.
194BB.
5
72. In section 194C of the Income-tax Act, in sub-section (5), in the proviso, for the words Amendment
“seventy-five thousand rupees”, the words “one lakh rupees” shall be substituted with effect from the of section
194C.
1st day of June, 2016.
73. In section 194D of the Income-tax Act, in the second proviso, for the words “twenty thousand Amendment
rupees”, the words “fifteen thousand rupees” shall be substituted with effect from the 1st day of of section
194D.
10 June, 2016.
74. In section 194DA of the Income-tax Act, for the words “two per cent.”, the words “one per cent.” Amendment
of section
shall be substituted with effect from the 1st day of June, 2016.
194DA.
75. In section 194EE of the Income-tax Act, for the words “twenty per cent.”, the words “ten per Amendment
of section
cent.” shall be substituted with effect from the 1st day of June, 2016.
194EE.
15
76. In section 194G of the Income-tax Act, in sub-section (1), with effect from the 1st day of Amendment
of section
June, 2016,—
194G.
(i) for the words “one thousand rupees”, the words “fifteen thousand rupees” shall be substituted;
(ii) for the words “ten per cent.”, the words “five per cent.” shall be substituted.
77. In section 194H of the Income-tax Act, with effect from the 1st day of June, 2016,—
20
(i) for the words “ten per cent.”, the words “five per cent.” shall be substituted;
Amendment
of section
194H.
(ii) in first proviso, for the words “five thousand rupees”, the words “fifteen thousand rupees” shall
be substituted.
78. Section 194K and section 194L of the Income-tax Act shall be omitted with effect from the 1st Omission of
sections 194K
day of June, 2016.
and 194L.
25
79. In section 194LA of the Income-tax Act, in the proviso, for the words “two hundred thousand Amendment
rupees”, the words “two lakh and fifty thousand rupees” shall be substituted with effect from the 1st day of section
194LA.
of June, 2016.
Amendment
of section
(i) in sub-section (1), for the words, brackets, figures and letters “in clause (23FC)”, the words, 194LBA.
80. In section 194LBA of the Income-tax Act, with effect from the 1st day of June, 2016,—
30
brackets, figures and letters “in sub-clause (a) of clause (23FC)” shall be substituted;
(ii) in sub-section (2), for the words, brackets, figures and letters “in clause (23FC)”, the words,
brackets, figures and letters “in sub-clause (a) of clause (23FC)” shall be substituted.
81. In section 194LBB of the Income-tax Act, for the words “deduct income-tax thereon at the rate of Amendment
ten per cent.”, the following shall be substituted with effect from the 1st day of June, 2016, namely:— of section
194LBB.
35
“deduct income-tax thereon,—
(i) at the rate of ten per cent., where the payee is a resident;
(ii) at the rates in force, where the payee is a non-resident (not being a company) or a foreign
company.”.
82. After section 194LBB of the Income-tax Act, the following section shall be inserted with effect Insertion of
new section
40 from the 1st day of June, 2016, namely:—
194LBC.
45
‘194LBC. (1) Where any income is payable to an investor, being a resident, in respect of an
investment in a securitisation trust specified in clause (d) of the Explanation occurring after section
115TCA, the person responsible for making the payment shall, at the time of credit of such income
to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft
or by any other mode, whichever is earlier, deduct income-tax thereon, at the rate of—
(i) twenty-five per cent., if the payee is an individual or a Hindu undivided family;
(ii) thirty per cent., if the payee is any other person.
50
(2) Where any income is payable to an investor, being a non-resident (not being a company) or
a foreign company, in respect of an investment in a securitisation trust specified in clause (d) of the
Explanation occurring after section 115TCA, the person responsible for making the payment shall,
at the time of credit of such income to the account of the payee or at the time of payment thereof in
Income in
respect of
investment in
securitisation
trust.
32
cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax
thereon, at the rates in force.
Explanation.—For the purposes of this section,—
(a) “investor” shall have the meaning assigned to it in clause (a) of the Explanation occurring
after section 115TCA;
5
(b) where any income as aforesaid is credited to any account, whether called “suspense account”
or by any other name, in the books of account of the person liable to pay such income, such
crediting shall be deemed to be the credit of such income to the account of the payee, and the
provisions of this section shall apply accordingly.’.
Amendment
of section
197.
Amendment
of section
197A.
83. In section 197 of the Income-tax Act, in sub-section (1), after the figures and letters “194LA”, the 10
figures and letters “, 194LBB, 194LBC” shall be inserted with effect from the 1st day of June, 2016.
84. In section 197A of the Income-tax Act, with effect from the 1st day of June, 2016,—
(a) in sub-section (1A), after the word, figures and letters “section 194DA” at both the places
where they occur, the words, figures and letter “or section 194-I” shall be inserted;
(b) in sub-section (1C), after the word, figures and letters “section 194EE” at both the places 15
where they occur, the words, figures and letter “or section 194-I” shall be inserted.
Amendment
of section
206AA.
85. In section 206AA of the Income-tax Act, for sub-section (7), the following sub-section shall be
substituted with effect from the 1st day of June, 2016, namely:—
“(7) The provisions of this section shall not apply to a non-resident, not being a company, or to a
foreign company, in respect of—
20
(i) payment of interest on long-term bonds as referred to in section 194LC; and
(ii) any other payment subject to such conditions as may be prescribed.”.
Amendment
of section
206C.
86. In section 206C of the Income-tax Act, with effect from the 1st day of June, 2016,—
(i) in sub-section (1), in the Table, after serial number (vii) and the entries relating thereto, the
following serial number and entries shall be inserted, namely:—
25
Sl. No.
Nature of goods
(1)
“(viii)
Percentage
(2)
(3)
Motor vehicle, value exceeding ten lakh rupees
one per cent.:”;
(ii) in sub-section (1D),—
(A) after the words “or jewellery”, the words “or any other goods (other than bullion or jewellery) 30
or providing any service” shall be inserted;
(B) in clause (ii), for the word “rupees.”, the words “rupees; or” shall be substituted;
(C) after clause (ii), the following clause shall be inserted, namely:—
“(iii) for any goods, other than those referred to in clauses (i) and (ii), or any service, exceeds
two hundred thousand rupees:
35
Provided that no tax shall be collected at source under this sub-section on any amount on
which tax has been deducted by the payer under Chapter XVII-B.”;
(iii) after sub-section (1D), the following sub-section shall be inserted, namely:—
“(1E) Nothing contained in sub-section (1D) in relation to sale of any goods (other than bullion
or jewellery) or providing any service shall apply to such class of buyers who fulfil such conditions, 40
as may be prescribed.”;
(iv) after sub-section (11), in the Explanation, in clause (c), after the word “sold”, the words,
brackets, figure and letter “or services referred to in sub-section (1D) are provided” shall be inserted.
Amendment
of section
211.
87. In section 211 of the Income-tax Act, for sub-section (1), the following sub-section shall be
substituted with effect from the 1st day of June, 2016, namely:—
45
“(1) Advance tax on the current income calculated in the manner laid down in section 209 shall be
payable by—
(a) all the assessees, other than the assessee referred to in clause (b), who are liable to pay
the same, in four instalments during each financial year and the due date of each instalment and
the amount of such instalment shall be as specified in the Table below:
50
33
TABLE
Due date of instalment
On or before the 15th June
Not less than fifteen per cent. of such advance tax.
On or before the 15th September
Not less than forty-five per cent. of such
advance tax, as reduced by the amount, if any, paid in
the earlier instalment.
On or before the 15th December
Not less than seventy-five per cent. of such advance
tax, as reduced by the amount or amounts, if any,
paid in the earlier instalment or instalments.
On or before the 15th March
The whole amount of such advance tax, as reduced
by the amount or amounts, if any, paid in the earlier
instalment or instalments;
5
10
15
Amount payable
(b) an eligible assessee in respect of an eligible business referred to in section 44AD, to the
extent of the whole amount of such advance tax during each financial year on or before the
15th March:
Provided that any amount paid by way of advance tax on or before the 31st day of March shall
also be treated as advance tax paid during the financial year ending on that day for all the purposes
of this Act.”.
88. In section 220 of the Income-tax Act, in sub-section (2A), after clause (iii), the following provisos Amendment
of section
20 shall be inserted with effect from the 1st day of June, 2016, namely:—
220.
“Provided that the order accepting or rejecting the application of the assessee, either in full or in
part, shall be passed within a period of twelve months from the end of the month in which the
application is received:
25
Provided further that no order rejecting the application, either in full or in part, shall be passed
unless the assessee has been given an opportunity of being heard:
Provided also that where any application is pending as on the 1st day of June, 2016, the order
shall be passed on or before the 31st day of May, 2017.”.
89. In section 234C of the Income-tax Act, in sub-section (1), with effect from the 1st day of Amendment
of section
June, 2016,—
234C.
30
(i) for clause (a), the following clause shall be substituted, namely:—
“(a) an assessee, other than an eligible assessee in respect of the eligible business referred to
in section 44AD, who is liable to pay advance tax under section 208 has failed to pay such
tax or—
35
40
45
(i) the advance tax paid by such assessee on its current income on or before the 15th day
of June is less than fifteen per cent. of the tax due on the returned income or the amount of
such advance tax paid on or before the 15th day of September is less than forty-five per cent.
of the tax due on the returned income or the amount of such advance tax paid on or before the
15th day of December is less than seventy-five per cent. of the tax due on the returned income,
then, the assessee shall be liable to pay simple interest at the rate of one per cent. per month
for a period of three months on the amount of the shortfall from fifteen per cent. or forty-five per
cent. or seventy-five per cent., as the case may be, of the tax due on the returned income;
(ii) the advance tax paid by the assessee on the current income on or before the 15th day of
March is less than the tax due on the returned income, then, the assessee shall be liable to
pay simple interest at the rate of one per cent. on the amount of the shortfall from the tax due
on the returned income:
Provided that if the advance tax paid by the assessee on the current income, on or before the
15th day of June or the 15th day of September, is not less than twelve per cent. or, as the case
may be, thirty-six per cent. of the tax due on the returned income, then, the assessee shall not be
liable to pay any interest on the amount of the shortfall on those dates;”;
50
(ii) in clause (b), for the portion beginning with the words “the assessee, other than a company”
and ending with the words “shortfall from the tax due on the returned income”, the following shall be
substituted, namely:—
“an eligible assessee in respect of the eligible business referred to in section 44AD, who
is liable to pay advance tax under section 208 has failed to pay such tax or the advance tax
34
paid by the assessee on its current income on or before the 15 th day of March is less than the
tax due on the returned income, then, the assessee shall be liable to pay simple interest at
the rate of one per cent. on the amount of the shortfall from the tax due on the
returned income:”;
(iii) in the first proviso, below clause (b)—
5
(I) in clause (b), for the word and figure “section 2”, the words and figure “section 2; or” shall
be substituted;
(II) after clause (b), the following clause shall be inserted, namely:—
‘(c) income under the head “Profits and gains of business or profession” in cases where
the income accrues or arises under the said head for the first time,’;
10
(III) in the long line, for the words, brackets and letter “or clause (b)”, the words, brackets
and letters “or clause (b) or clause (c)” shall be substituted.
Amendment
of section
244A.
90. In section 244A of the Income-tax Act, with effect from the 1st day of June, 2016,—
(A) in sub-section (1), for clause (a), the following clauses shall be substituted, namely:—
“(a) where the refund is out of any tax collected at source under section 206C or paid by way 15
of advance tax or treated as paid under section 199, during the financial year immediately preceding
the assessment year, such interest shall be calculated at the rate of one-half per cent. for every
month or part of a month comprised in the period,—
(i) from the 1st day of April of the assessment year to the date on which the refund is
granted, if the return of income has been furnished on or before the due date specified under 20
sub-section (1) of section 139; or
(ii) from the date of furnishing of return of income to the date on which the refund is granted,
in a case not covered under sub-clause (i);
(aa) where the refund is out of any tax paid under section 140A, such interest shall be calculated
at the rate of one-half per cent. for every month or part of a month comprised in the period, from 25
the date of furnishing of return of income or payment of tax, whichever is later, to the date on
which the refund is granted:
Provided that no interest under clause (a) or clause (aa) shall be payable, if the amount of
refund is less than ten per cent. of the tax as determined under sub-section (1) of section 143 or
on regular assessment;”;
30
(B) after sub-section (1), the following sub-section shall be inserted, namely:—
“(1A) In a case where a refund arises as a result of giving effect to an order under section 250
or section 254 or section 260 or section 262 or section 263 or section 264, wholly or partly,
otherwise than by making a fresh assessment or reassessment, the assessee shall be entitled to
receive, in addition to the interest payable under sub-section (1), an additional interest on such 35
amount of refund calculated at the rate of three per cent. per annum, for the period beginning
from the date following the date of expiry of the time allowed under sub-section (5) of section 153
to the date on which the refund is granted.”;
(C) in sub-section (2), after the words “interest is payable”, the words, brackets, figures and
40
letter “under sub-sections (1) or (1A)” shall be inserted.
Amendment
of section
249.
91. In section 249 of the Income-tax Act, in sub-section (2), in clause (b), with effect from the 1st day
of April, 2017,—
(i) in the proviso, for the words “excluded, or” occurring at the end, the word “excluded:” shall be
substituted;
(ii) after the proviso, the following proviso shall be inserted, namely:—
45
“Provided further that where an application has been made under sub-section (1) of section
270AA, the period beginning from the date on which the application is made, to the date on which
the order rejecting the application is served on the assessee, shall be excluded, or”.
Amendment
of section
252.
92. In section 252 of the Income-tax Act, with effect from the 1st day of June, 2016,—
(a) in sub-section (3), in clause (b), the words “the Senior Vice-President or” shall be omitted;
(b) sub-section (4A) shall be omitted;
(c) in sub-section (5), the words “Senior Vice-President or a” shall be omitted.
50
35
93. In section 253 of the Income-tax Act,—
(A) in sub-section (1), with effect from the 1st day of April, 2017,—
Amendment
of section
253.
(i) in clause (a), after the word and figures “section 250,”, the word, figures and letter “section
270A,” shall be inserted;
5
(ii) in clause (c), after the words and figures “or under section 263”, the words, figures and letter
“or under section 270A” shall be inserted;
(B) with effect from the 1st day of June, 2016,—
(a) sub-section (2A) and sub-section (3A) shall be omitted;
10
15
20
(b) for sub-section (4), the following sub-section shall be substituted with effect from the
1st day of June, 2016, namely:—
“(4) The Assessing Officer or the assessee, as the case may be, on receipt of notice that
an appeal against the order of the Commissioner (Appeals), has been preferred under subsection (1) or sub-section (2) by the other party, may, notwithstanding that he may not have
appealed against such order or any part thereof, within thirty days of the receipt of the notice,
file a memorandum of cross-objections, verified in the prescribed manner, against any part
of the order of the Commissioner (Appeals), and such memorandum shall be disposed of by
the Appellate Tribunal as if it were an appeal presented within the time specified in
sub-section (3).”;
(C) in sub-section (6), for the proviso, the following proviso shall be substituted and shall be
deemed to have been substituted with effect from the 1st day of July, 2012, namely:—
“Provided that no fee shall be payable in the case of an appeal referred to in sub-section (2),
or, sub-section (2A) as it stood before its amendment by the Finance Act, 2016, or, a memorandum
of cross objections referred to in sub-section (4).”.
94. In section 254 of the Income-tax Act, with effect from the 1st day of June, 2016,—
25
(a) in sub-section (2), for the words “four years from the date of the order”, the words “six months
from the end of the month in which the order was passed” shall be substituted;
Amendment
of section
254.
(b) in sub-section (2A), the words, brackets, figure and letter “or sub-section (2A)” shall be omitted.
95. In section 255 of the Income-tax Act, in sub-section (3), for the words “fifteen lakh rupees”, the Amendment
of section
words “fifty lakh rupees” shall be substituted with effect from the 1st day of June, 2016.
255.
30
35
96. After section 270 of the Income-tax Act [as it stood immediately before its omission by section Insertion of
105 of the Direct Tax Laws (Amendment) Act, 1987], the following section shall be inserted with effect new section
270A.
from the 1st day of April, 2017, namely:—
‘270A. (1) The Assessing Officer or the Commissioner (Appeals) or the Principal Commissioner
or Commissioner may direct that any person who has under-reported his income shall be liable to
pay a penalty in addition to tax, if any, on the under-reported income.
(2) A person shall be considered to have under-reported his income, if—
(a) the income assessed is greater than the income determined in the return processed under
clause (a) of sub-section (1) of section 143;
40
(b) the income assessed is greater than the maximum amount not chargeable to tax, where no
return of income has been furnished;
(c) the income reassessed is greater than the income assessed or reassessed immediately
before such reassessment;
45
(d) the amount of deemed total income assessed or reassessed as per the provisions of
section 115JB or section 115JC, as the case may be, is greater than the deemed total income
determined in the return processed under clause (a) of sub-section (1) of section 143;
(e) the amount of deemed total income assessed as per the provisions of section 115JB or
section 115JC is greater than the maximum amount not chargeable to tax, where no return of
income has been filed;
50
(f) the income assessed or reassessed has the effect of reducing the loss or converting such
loss into income.
Penalty for
underreporting and
misreporting
of income.
36
(3) The amount of under-reported income shall be,—
(i) in a case where income has been assessed for the first time,—
(a) if return has been furnished, the difference between the amount of income assessed
and the amount of income determined under clause (a) of sub-section (1) of section 143;
(b) in a case where no return has been furnished,—
5
(A) the amount of income assessed, in the case of a company, firm or local authority; and
(B) the difference between the amount of income assessed and the maximum amount
not chargeable to tax, in a case not covered in item (A);
(ii) in any other case, the difference between the amount of income reassessed or recomputed
and the amount of income assessed, reassessed or recomputed in a preceding order:
10
Provided that where under-reported income arises out of determination of deemed total income
in accordance with the provisions of section 115JB or section 115JC, the amount of total
under-reported income shall be determined in accordance with the following formula—
(A — B) + (C — D)
where,
15
A = the total income assessed as per the provisions other than the provisions contained in
section 115JB or section 115JC (herein called general provisions);
B = the total income that would have been chargeable had the total income assessed as per
the general provisions been reduced by the amount of under-reported income;
C = the total income assessed as per the provisions contained in section 115JB or section 115JC; 20
D = the total income that would have been chargeable had the total income assessed as per
the provisions contained in section 115JB or section 115JC been reduced by the amount of
under-reported income:
Provided further that where the amount of under-reported income on any issue is considered both
under the provisions contained in section 115JB or section 115JC and under general provisions, such 25
amount shall not be reduced from total income assessed while determining the amount under item D.
Explanation.—For the purposes of this section,—
(a) “preceding order” means an order immediately preceding the order during the course of
which the penalty under sub-section (1) has been initiated;
(b) in a case where an assessment or reassessment has the effect of reducing the loss declared 30
in the return or converting that loss into income, the amount of under-reported income shall be
the difference between the loss claimed and the income or loss, as the case may be, assessed or
reassessed.
(4) Subject to the provisions of sub-section (6), where the source of any receipt, deposit or
investment in any assessment year is claimed to be an amount added to income or deducted while 35
computing loss, as the case may be, in the assessment of such person in any year prior to the
assessment year in which such receipt, deposit or investment appears (hereinafter referred to as
“preceding year”) and no penalty was levied for such preceding year, then, the under-reported
income shall include such amount as is sufficient to cover such receipt, deposit or investment.
(5) The amount referred to in sub-section (4) shall be deemed to be amount of income 40
under-reported for the preceding year in the following order—
(a) the preceding year immediately before the year in which the receipt, deposit or investment
appears, being the first preceding year; and
(b) where the amount added or deducted in the first preceding year is not sufficient to cover the
receipt, deposit or investment, the year immediately preceding the first preceding year and so on. 45
(6) The under-reported income, for the purposes of this section, shall not include the following, namely:—
(a) the amount of income in respect of which the assessee offers an explanation and the
Assessing Officer or the Commissioner or the Commissioner (Appeals), as the case may be, is
satisfied that the explanation is bona fide and the assessee has disclosed all the material facts to
substantiate the explanation offered;
50
(b) the amount of under-reported income determined on the basis of an estimate, if the accounts
are correct and complete to the satisfaction of the Assessing Officer or the Commissioner (Appeals)
or the Commissioner or the Principal Commissioner, as the case may be, but the method employed
is such that the income cannot properly be deduced therefrom;
37
(c) the amount of under-reported income determined on the basis of an estimate, if the assessee
has, on his own, estimated a lower amount of addition or disallowance on the same issue, has
included such amount in the computation of his income and has disclosed all the facts material
to the addition or disallowance;
5
(d) the amount of under-reported income represented by any addition made in conformity with
the arm’s length price determined by the Transfer Pricing Officer, where the assessee had
maintained information and documents as prescribed under section 92D, declared the international
transaction under Chapter X, and, disclosed all the material facts relating to the transaction; and
(e) the amount of undisclosed income referred to in section 271AAB.
10
15
(7) The penalty referred to in sub-section (1) shall be a sum equal to fifty per cent. of the amount
of tax payable on under-reported income.
(8) Notwithstanding anything contained in sub-section (6) or sub-section (7), where under-reported
income is in consequence of any misreporting thereof by any person, the penalty referred to in
sub-section (1) shall be equal to two hundred per cent. of the amount of tax payable on
under-reported income.
(9) The cases of misreporting of income referred to in sub-section (8) shall be the following,
namely:—
(a) misrepresentation or suppression of facts;
(b) failure to record investments in the books of account;
20
(c) claim of expenditure not substantiated by any evidence;
(d) recording of any false entry in the books of account;
(e) failure to record any receipt in books of account having a bearing on total income; and
(f) failure to report any international transaction or any transaction deemed to be an international
transaction or any specified domestic transaction, to which the provisions of Chapter X apply.
25
(10) The tax payable in respect of the under-reported income shall be the amount of tax calculated—
(a) on such income as if it were the total income, in the case of a company, firm or local
authority; and
(b) at the rate of thirty per cent., of the amount of under-reported income, in any other case.
30
(11) No addition or disallowance of an amount shall form the basis for imposition of penalty, if
such addition or disallowance has formed the basis of imposition of penalty in the case of the
person for the same or any other assessment year.
(12) The penalty referred to in sub-section (1) shall be imposed, by an order in writing, by the
Assessing Officer, the Commissioner, or the Commissioner (Appeals), as the case may be.’.
97. After section 270A of the Income-tax Act as so inserted, the following section shall be inserted Insertion of
new section
35 with effect from the 1st day of April, 2017, namely:—
270AA.
“270AA.(1) An assessee may make an application to the Assessing Officer to grant immunity Immunity from
from imposition of penalty under section 270A and initiation of proceedings under section 276C, if imposition of
penalty, etc.
he fulfils the following conditions, namely:—
40
(a) the tax and interest payable as per the order of assessment or reassessment under
sub-section (3) of section 143 or section 147, as the case may be, has been paid within the
period specified in such notice of demand; and
(b) no appeal against the order referred to in clause (a) has been filed.
45
(2) An application referred to in sub-section (1) shall be made within one month from the end of
the month in which the order referred to in clause (a) of sub-section (1) has been received and shall
be made in such form and verified in such manner as may be prescribed.
50
(3) The Assessing Officer shall, subject to fulfilment of the conditions specified in sub-section (1)
and after the expiry of the period of filing the appeal as specified in clause (b) of sub-section (2) of
section 249, grant immunity from imposition of penalty under section 270A and initiation of proceedings
under section 276C, where the proceedings for penalty under section 270A has not been initiated
under the circumstances referred to in sub-section (9) of the said section 270A.
38
(4) The Assessing Officer shall, within a period of one month from the end of the month in which
the application under sub-section (1) is received, pass an order accepting or rejecting such
application:
Provided that no order rejecting the application shall be passed unless the assessee has been
given an opportunity of being heard.
5
(5) The order made under sub-section (4) shall be final.
(6) No appeal under section 246A or an application for revision under section 264 shall be
admissible against the order of assessment or reassessment, referred to in clause (a) of sub-section
(1), in a case where an order under sub-section (4) has been made accepting the application.”.
Amendment
of section
271.
98. In section 271 of the Income-tax Act, after sub-section (6), the following sub-section shall be 10
inserted with effect from the 1st day of April, 2017, namely:—
“(7) The provisions of this section shall not apply to and in relation to any assessment for the
assessment year commencing on or after the 1st day of April, 2017.”.
Amendment
of section
271A.
99. In section 271A of the Income-tax Act, after the words “Without prejudice to the provisions of”,
the words, figures and letter “section 270A or” shall be inserted with effect from the 1st day of 15
April, 2017.
Amendment
of section
271AA.
100. In the Income-tax Act, with effect from the 1st day of April, 2017, section 271AA shall be
renumbered as sub-section (1) thereof and,—
(a) in sub-section (1) as so renumbered, after the words “without prejudice to the provisions of”,
the word, figures and letter “section 270A or” shall be inserted;
20
(b) after sub-section (1) as so renumbered, the following sub-section shall be inserted, namely:—
“(2) If any person fails to furnish the information and the document as required under
sub-section (4) of section 92D, the prescribed income-tax authority referred to in the said
sub-section may direct that such person shall pay, by way of penalty, a sum of five hundred
thousand rupees.”.
25
Amendment
of section
271AAB.
101. In section 271AAB of the Income-tax Act, with effect from the 1st day of April, 2017,—
(a) in sub-section (1), in clause (c), for the words “which shall not be less than thirty per cent. but
which shall not exceed ninety per cent.”, the words “computed at the rate of sixty per cent.” shall be
substituted;
(b) in sub-section (2), after the words “No penalty under the provisions of”, the words, figures and 30
letter “section 270A or” shall be inserted.
Insertion of
new section
271GB.
Penalty for
failure to
furnish report
or for
furnishing
inaccurate
report under
section 286.
102. After section 271GA of the Income-tax Act, the following section shall be inserted with effect
from the 1st day of April, 2017,—
“271GB. (1) If any reporting entity referred to in section 286, which is required to furnish the report
referred to in sub-section (2) of the said section, in respect of a reporting accounting year, fails to do
so, the authority prescribed under that section (herein referred to as prescribed authority) may
direct that such entity shall pay, by way of penalty, a sum of,—
35
(a) five thousand rupees for every day for which the failure continues, if the period of failure
does not exceed one month; or
(b) fifteen thousand rupees for every day for which the failure continues beyond the period of
one month.
40
(2) Where any reporting entity referred to in section 286 fails to produce the information and
documents within the period allowed under sub-section (6) of the said section, the prescribed authority
may direct that such entity shall pay, by way of penalty, a sum of five thousand rupees for every day
during which the failure continues, beginning from the day immediately following the day on which 45
the period for furnishing the information and document expires.
(3) If the failure referred to in sub-section (1) or sub-section (2) continues after an order has been
served on the entity, directing it to pay the penalty under sub-section (1) or, as the case may be,
under sub-section (2), then, notwithstanding anything contained in sub-section (1) or sub-section
(2), the prescribed authority may direct that such entity shall pay, by way of penalty, a sum of fifty 50
thousand rupees for every day for which such failure continues beginning from the date of service of
such order.
39
(4) Where a reporting entity referred to in section 286 provides inaccurate information in the
report furnished in accordance with sub-section (2) of the said section and where—
(a) the entity has knowledge of the inaccuracy at the time of furnishing the report but fails to
inform the prescribed authority; or
5
(b) the entity discovers the inaccuracy after the report is furnished and fails to inform the
prescribed authority and furnish correct report within a period of fifteen days of such
discovery; or
(c) the entity furnishes inaccurate information or document in response to the notice issued
under sub-section (6) of section 286,
10 then, the prescribed authority may direct that such person shall pay, by way of penalty, a sum of five
lakh rupees.”.
103. In section 272A of the Income-tax Act, with effect from the 1st day of April, 2017,—
(i) in sub-section (1),—
Amendment
of section
272A.
(a) in clause (c), for the words “place or time,”, the words “place or time; or” shall be substituted;
15
(b) after clause (c) and before the long line , the following clause shall be inserted, namely:—
“(d) fails to comply with a notice under sub-section (1) of section 142 or sub-section (2) of
section 143 or fails to comply with a direction issued under sub-section (2A) of section 142,”;
(ii) in sub-section (3), after clause (a), the following clause shall be inserted, namely:—
20
“(aa) in a case falling under clause (d) of sub-section (1), by the income-tax authority who
had issued the notice or direction referred to therein;”.
104. In section 273A of the Income-tax Act,—
(i) with effect from the 1st day of April, 2017,—
Amendment
of section
273A.
(a) in sub-section (1),—
25
(I) in clause (ii), after the words “or imposable on a person under”, the words, figures and
letter “section 270A or” shall be inserted;
(II) in the Explanation, after the words “as not to attract the provisions of”, the words, figures
and letter “section 270A or” shall be inserted;
(b) in sub-section (2), in clause (b), after the words “if in a case falling under”, the words,
figures and letter “section 270A or” shall be inserted;
30
35
(ii) after sub-section (4), the following sub-section shall be inserted with effect from the 1st day
of June, 2016, namely:—
“(4A) The order under sub-section (4), either accepting or rejecting the application in full or in
part, shall be passed within a period of twelve months from the end of the month in which the
application under the said sub-section is received by the Principal Commissioner or the
Commissioner:
Provided that no order rejecting the application, either in full or in part, shall be passed unless
the assessee has been given an opportunity of being heard:
Provided further that where any application is pending as on the 1st day of June, 2016, the
order shall be passed on or before the 31st day of May, 2017.”.
40
45
105. In section 273AA of the Income-tax Act, after sub-section (3), the following sub-section shall
be inserted with effect from the 1st day of June, 2016, namely:—
“(3A) The order under sub-section (3), either accepting or rejecting the application in full or in
part, shall be passed within a period of twelve months from the end of the month in which the
application under the said sub-section is received by the Principal Commissioner or the
Commissioner:
Amendment
of section
273AA.
40
Provided that no order rejecting the application, either in full or in part, shall be passed unless
the assessee has been given an opportunity of being heard:
Provided further that where any application is pending as on the 1st day of June, 2016, the order
shall be passed on or before the 31st day of May, 2017.”.
Amendment
of section
273B.
106. In section 273B of the Income-tax Act, after the word, figures and letters “section 271GA,”, the
word, figures and letters “section 271GB,” shall be inserted with effect from the 1st day of April, 2017.
Amendment
of section
279.
107. In section 279 of the Income-tax Act, in sub-section (1A), after the words “or imposable on him
under”, the words, figures and letter “section 270A or” shall be inserted with effect from the 1st day of
April, 2017.
Amendment
of section
281B.
108. In section 281B of the Income-tax Act, with effect from the 1st day of June, 2016,—
5
10
(a) in sub-section (1), the Explanation shall be omitted;
(b) after sub-section (2), the following sub-sections shall be inserted, namely:—
‘(3) Where the assessee furnishes a guarantee from a scheduled bank for an amount not less
than the fair market value of the property provisionally attached under sub-section (1), the
Assessing Officer shall, by an order in writing, revoke such attachment:
15
Provided that where the Assessing Officer is satisfied that a guarantee from a scheduled bank for
an amount lower than the fair market value of the property is sufficient to protect the interests of the
revenue, he may accept such guarantee and revoke the attachment.
(4) The Assessing Officer may, for the purposes of determining the value of the property
provisionally attached under sub-section (1), make a reference to the Valuation Officer referred 20
to in section 142A, who shall estimate the fair market value of the property in the manner provided
under that section and submit a report of the estimate to the Assessing Officer within a period of
thirty days from the date of receipt of such reference.
(5) An order revoking the provisional attachment under sub-section (3) shall be made—
(i) within forty-five days from the date of receipt of the guarantee, where a reference to the 25
Valuation Officer has been made under sub-section (4); or
(ii) within fifteen days from the date of receipt of guarantee in any other case.
(6) Where a notice of demand specifying a sum payable is served upon the assessee and the
assessee fails to pay that sum within the time specified in the notice of demand, the Assessing
Officer may invoke the guarantee furnished under sub-section (3), wholly or in part, to recover 30
the amount.
(7) The Assessing Officer shall, in the interests of the revenue, invoke the bank guarantee, if
the assessee fails to renew the guarantee referred to in sub-section (3), or fails to furnish a new
guarantee from a scheduled bank for an equal amount, fifteen days before the expiry of the
guarantee referred to in sub-section (3).
35
(8) The amount realised by invoking the guarantee referred to in sub-section (3) shall be
adjusted against the existing demand which is payable by the assessee and the balance amount,
if any, shall be deposited in the Personal Deposit Account of the Principal Commissioner or
Commissioner in the branch of the Reserve Bank of India or the State Bank of India or of its
subsidiaries or any bank as may be appointed by the Reserve Bank of India as its agent under 40
the provisions of sub-section (1) of section 45 of the Reserve Bank of India Act, 1934 at the place
where the office of the Principal Commissioner or Commissioner is situate.
2 of 1934.
(9) Where the Assessing Officer is satisfied that the guarantee referred to in sub-section (3) is
not required anymore to protect the interests of the revenue, he shall release that guarantee
45
forthwith.
Explanation.—For the purposes of this section, the expression “scheduled bank” shall mean a
bank included in the Second Schedule to the Reserve Bank of India Act, 1934.’.
Amendment
of section
282A.
109. In section 282A of the Income-tax Act, in sub-section (1), for the words “signed in manuscript
by that authority”, the words “signed and issued in paper form or communicated in electronic form by
that authority in accordance with such procedure as may be prescribed” shall be substituted with effect 50
from the 1st day of June, 2016.
Insertion of
new section
286.
110. After section 285BA of the Income-tax Act, the following section shall be inserted with effect
from the 1st day of April, 2017, namely:—
2 of 1934.
41
‘286.(1) Every constituent entity resident in India, shall, if it is constituent of an international
group, the parent entity of which is not resident in India, notify the prescribed income-tax authority
(herein referred to as prescribed authority) in the form and manner, on or before such date, as may
be prescribed,—
5
(a) whether it is the alternate reporting entity of the international group; or
(b) the details of the parent entity or the alternate reporting entity, if any, of the international
group, and the country or territory of which the said entities are resident.
10
(2) Every parent entity or the alternate reporting entity, resident in India, shall, for every reporting
accounting year, in respect of the international group of which it is a constituent, furnish a report, to
the prescribed authority on or before the due date specified under sub-section (1) of section 139, for
furnishing the return of income for the relevant accounting year, in the form and manner as may be
prescribed.
(3) For the purposes of sub-section (2), the report in respect of an international group shall
include,—
15
20
(a) the aggregate information in respect of the amount of revenue, profit or loss before
income-tax, amount of income-tax paid, amount of income-tax accrued, stated capital, accumulated
earnings, number of employees and tangible assets not being cash or cash equivalents, with
regard to each country or territory in which the group operates;
(b) the details of each constituent entity of the group including the country or territory in which
such constituent entity is incorporated or organised or established and the country or territory
where it is resident;
(c) the nature and details of the main business activity or activities of each constituent
entity; and
(d) any other information as may be prescribed.
25
(4) A constituent entity of an international group, resident in India, other than the entity referred to
in sub-section (2), shall furnish the report referred to in the said sub-section, in respect of the
international group for a reporting accounting year, if the parent entity is resident of a country
or territory,—
(a) with which India does not have an agreement providing for exchange of the report of the
30
nature referred to in sub-section (2); or
(b) there has been a systemic failure of the country or territory and the said failure has been
intimated by the prescribed authority to such constituent entity:
Provided that where there are more than one such constituent entities of the group, resident in
India, the report shall be furnished by any one constituent entity, if,—
35
(a) the international group has designated such entity to furnish the report in accordance with
the provisions of sub-section (2) on behalf of all the constituent entities resident in India; and
(b) the information has been conveyed in writing on behalf of the group to the prescribed
authority.
(5) Nothing contained in sub-section (4) shall apply, if, an alternate reporting entity of the
40
international group has furnished a report of the nature referred to in sub-section (2), with the tax
authority of the country or territory in which such entity is resident, on or before the date specified in
the said sub-section and the following conditions are satisfied, namely:—
(a) the report is required to be furnished under the law for the time being in force in the said
country or territory;
45
(b) the said country or territory has entered into an agreement with India providing for exchange
of the said report;
Furnishing of
report in
respect of
international
group.
42
(c) the prescribed authority has not conveyed any systemic failure in respect of the said
country or territory to any constituent entity of the group that is resident in India;
(d) the said country or territory has been informed in writing by the constituent entity that it is
the alternate reporting entity on behalf of the international group; and
(e) the prescribed authority has been informed by the entities referred to in
sub-section (4) in accordance with sub-section (1).
5
(6) The prescribed authority may, for the purposes of determining the accuracy of the report
furnished by any reporting entity, by issue of a notice in writing, require the entity to produce such
information and document as may be specified in the notice within thirty days of the date of receipt
of the notice:
10
Provided that the prescribed authority may, on an application made by such entity, extend the
period of thirty days by a further period not exceeding thirty days.
(7) The provisions of this section shall not apply in respect of an international group for an
accounting year, if the total consolidated group revenue, as reflected in the consolidated financial
statement for the accounting year preceding such accounting year does not exceed the amount, as 15
may be prescribed.
(8) The provisions of this section shall be applied in accordance with such guidelines and subject
to such conditions, as may be prescribed.
(9) For the purposes of this section,—
(a) “accounting year” means,—
20
(i) a previous year, in a case where the parent entity or alternate reporting entity is resident
in India; or
(ii) an annual accounting period, with respect to which the parent entity of the international
group prepares its financial statements under any law for the time being in force or the applicable
accounting standards of the country or territory of which such entity is resident, in any 25
other case;
(b) “agreement” means an agreement referred to in sub-section (1) of section 90 or sub-section
(1) of section 90A or any agreement as may be notified by the Central Government in this behalf;
(c) “alternate reporting entity” means any constituent entity of the international group that has
been designated by such group, in the place of the parent entity, to furnish the report of the 30
nature referred to in sub-section (2) in the country or territory in which the said constituent entity
is resident on behalf of such group;
(d) “constituent entity” means,—
(i) any separate entity of an international group that is included in the consolidated financial
statement of the said group for financial reporting purposes, or may be so included for the said 35
purpose, if the equity share of any entity of the international group were to be listed on a stock
exchange;
(ii) any such entity that is excluded from the consolidated financial statement of the
international group solely on the basis of size or materiality; or
(iii) any permanent establishment of any separate business entity of the international group 40
included in clause (i) or clause (ii), if such business unit prepares a separate financial statement
for such permanent establishment for financial reporting, regulatory, tax reporting or internal
management control purposes;
(e) “group” includes a parent entity and all the entities in respect of which, for the reason of
45
ownership or control, a consolidated financial statement for financial reporting purposes,—
(i) is required to be prepared under any law for the time being in force or the accounting
standards of the country or territory of which the parent entity is resident; or
43
(ii) would have been required to be prepared had the equity shares of any of the enterprises
were listed on a stock exchange in the country or territory of which the parent entity is resident;
5
(f) “consolidated financial statement” means the financial statement of an international group
in which the assets, liabilities, income, expenses and cash flows of the parent entity and the
constituent entities are presented as those of a single economic entity;
(g) “international group” means any group that includes,—
(i) two or more enterprises which are resident of different countries or territories; or
(ii) an enterprise, being a resident of one country or territory, which carries on any business
through a permanent establishment in other countries or territories;
10
15
(h) “parent entity” means a constituent entity, of an international group holding, directly or
indirectly, an interest in one or more of the other constituent entities of the international group,
such that,—
(i) it is required to prepare a consolidated financial statement under any law for the time
being in force or the accounting standards of the country or territory of which the entity is
resident; or
(ii) it would have been required to prepare a consolidated financial statement had the equity
shares of any of the enterprises were listed on a stock exchange,
20
and, there is no other constituent entity of such group which, due to ownership of any interest,
directly or indirectly, in the first mentioned constituent entity, is required to prepare a consolidated
financial statement, under the circumstances referred to in clause (i) or clause (ii), that includes
the separate financial statement of the first mentioned constituent entity;
(i) “permanent establishment” shall have the meaning assigned to it in clause (iiia) of
section 92F;
25
(j) “reporting accounting year” means the accounting year in respect of which the financial and
operational results are required to be reflected in the report referred to in sub-section (2);
(k) “reporting entity” means the constituent entity including the parent entity or the alternate
reporting entity, that is required to furnish a report of the nature referred to in sub-section (2);
30
(l) “systemic failure” with respect to a country or territory means that the country or territory has
an agreement with India providing for exchange of report of the nature referred to in
sub-section (2), but—
(i) in violation of the said agreement, it has suspended automatic exchange; or
(ii) has persistently failed to automatically provide to India the report in its possession in respect
of any international group having a constituent entity resident in India.’.
111. In section 288 of the Income-tax Act, in sub-section (4), in clause (b), after the word and figure Amendment
35 “section 271”, the words, brackets, letters and figures “clause (d) of sub-section (1) of section 272A or” of section
288.
shall be inserted with effect from the 1st day of April, 2017.
112. In the Fourth Schedule to the Income-tax Act, in Part A, with effect from the 1st day of
April, 2017,—
40
(a) in rule 6, in clause (a), after the word “employee”, the words “or one hundred and fifty thousand
rupees, whichever is less” shall be inserted;
(b) in rule 8,—
(i) in clause (iii), for the words “such other employer” occurring at the end, the words “such
other employer; or” shall be substituted;
(ii) after clause (iii) and before the Explanation, the following clause shall be inserted, namely:—
45
“(iv) if the entire balance standing to the credit of the employee is transferred to his account
under a pension scheme referred to in section 80CCD and notified by the Central Government.”.
Amendment
of Fourth
Schedule.
44
CHAPTER IV
INDIRECT TAXES
Customs
Amendment
of section 2.
52 of 1962.
113. In the Customs Act, 1962 (hereinafter referred to as the Customs Act), in section 2,––
(i) for clause (43), the following clause shall be substituted, namely:––
5
‘(43) “warehouse” means a public warehouse licensed under section 57 or a private warehouse
licensed under section 58 or a special warehouse licensed under section 58A;’;
(ii) clause (45) shall be omitted.
Amendment
of chapter
heading of
Chapter III.
Omission of
section 9.
Amendment of
section 25.
114. In the Customs Act, in Chapter III, for the chapter heading, the following chapter heading shall
be substituted, namely:––
10
“APPOINTMENT OF CUSTOMS PORTS, AIRPORTS, ETC.”.
115. In the Customs Act, section 9 shall be omitted.
116. In the Customs Act, in section 25,––
(i) for sub-section (4), the following sub-section shall be substituted, namely:––
“(4) Every notification issued under sub-section (1) or sub-section (2A) shall, unless otherwise provided, 15
come into force on the date of its issue by the Central Government for publication in the Official Gazette.”;
(ii) sub-section (5) shall be omitted.
Amendment
of section 28.
117. In the Customs Act, in section 28,––
(a) in the marginal heading, for the words “duties not levied or short-levied”, the words “duties not
levied or not paid or short-levied or short-paid” shall be substituted;
20
(b) in sub-section (1),––
(i) in the opening paragraph, for the words “duty has not been levied or has been shortlevied”, the words “duty has not been levied or not paid or has been short-levied or short- paid”
shall be substituted;
(ii) in clause (a),––
25
(A) for the words “one year”, the words “two years” shall be substituted;
(B) after the words “so levied”, the words “or paid” shall be inserted;
(c) in sub-section (3), for the words “one year”, the words “two years” shall be substituted;
(d) in sub-section (4),––
(i) in the opening paragraph, for the words “levied or has been short-levied”, the words “levied 30
or not paid or has been short-levied or short-paid” shall be substituted;
(ii) in the long line, for the words “so levied”, the words “so levied or not paid” shall be substituted;
(e) in sub-section (5), for the words “duty has not been levied or has been short-levied”, the
words “duty has not been levied or not paid or has been short-levied or short-paid” shall be substituted;
(f) in sub-section (6), in item (ii), for the words “one year”, the words “two years” shall be substituted; 35
(g) in sub-section (7), for the words “one year”, the words “two years” shall be substituted;
(h) in Explanation 1, in clause (a), for the words “not levied”, the words “not levied or not paid or
short-levied or short-paid” shall be substituted.
Amendment of
section 47.
118. In the Customs Act, in section 47,––
(a) in sub-section (1), the following proviso shall be inserted, namely:––
“Provided that the Central Government may, by notification in the Official Gazette, permit
certain class of importers to make deferred payment of said duty or any charges in such manner
as may be provided by rules.”;
(b) in sub-section (2), for the portion beginning with the words “Where the importer” and ending
40
45
with the words “payment of the said duty”, the following shall be substituted, namely:––
“Where the importer fails to pay the import duty, either in full or in part, within two days (excluding
holidays)––
(a) from the date on which the bill of entry is returned to him for payment of duty; or
5
(b) in the case of deferred payment under the proviso to sub-section (1), from such due
date as may be specified by rules made in this behalf,
he shall pay interest on the duty not paid or short-paid till the date of its payment, at such rate, not
below ten per cent. and not exceeding thirty-six per cent. per annum, as may be fixed by the Central
Government, by notification in the Official Gazette.”.
10
119. In the Customs Act, section 51 shall be renumbered as sub-section (1) thereof, and—
Amendment
of section 51.
(a) in sub-section (1) as so renumbered, the following proviso shall be inserted, namely:––
“Provided that the Central Government may, by notification in the Official Gazette, permit
certain class of exporters to make deferred payment of said duty or any charges in such manner
as may be provided by rules.”;
15
(b) after sub-section (1) as so renumbered, the following sub-section shall be inserted, namely:—
20
“(2) Where the exporter fails to pay the export duty, either in full or in part, under the proviso
to sub-section (1) by such due date as may be specified by rules, he shall pay interest on said
duty not paid or short-paid till the date of its payment at such rate, not below five per cent. and not
exceeding thirty-six per cent. per annum, as may be fixed by the Central Government, by
notification in the Official Gazette.”.
25
120. In the Customs Act, for section 53, the following section shall be substituted, namely:––
Substitution of
new section for
section 53.
“53. Subject to the provisions of section 11, where any goods imported in a conveyance and
mentioned in the import manifest or the import report, as the case may be, as for transit in the same
conveyance to any place outside India or to any customs station, the proper officer may allow the
goods and the conveyance to transit without payment of duty, subject to such conditions, as may be
prescribed.”.
Transit of
certain goods
without
payment of
duty.
121. In the Customs Act, for section 57, the following section shall be substituted, namely:––
Substitution of
new section for
section 57.
“57. The Principal Commissioner of Customs or Commissioner of Customs may, subject to such Licensing of
conditions as may be prescribed, license a public warehouse wherein dutiable goods may be deposited.”. public
warehouses.
30
122. In the Customs Act, for section 58, the following sections shall be substituted, namely:––
“58. The Principal Commissioner of Customs or Commissioner of Customs may, subject to such
conditions as may be prescribed, license a private warehouse wherein dutiable goods imported by
or on behalf of the licensee may be deposited.
35
Substitution of
new sections 58,
58A and 58B for
section 58.
Licensing of
private warehouses.
58A. (1) The Principal Commissioner of Customs or Commissioner of Customs may, subject to Licensing of
such conditions as may be prescribed, license a special warehouse wherein dutiable goods may be special waredeposited and such warehouse shall be caused to be locked by the proper officer and no person houses.
shall enter the warehouse or remove any goods therefrom without the permission of the proper
officer.
(2) The Board may, by notification in the Official Gazette, specify the class of goods which shall be
40 deposited in the special warehouse licensed under sub-section (1).
58B. (1) Where a licensee contravenes any of the provisions of this Act or the rules or regulations Cancellation of
made thereunder or breaches any of the conditions of the licence, the Principal Commissioner of Licence.
Customs or Commissioner of Customs may cancel the licence granted under section 57 or section
58 or section 58A:
45
Provided that before any licence is cancelled, the licensee shall be given a reasonable opportunity
of being heard.
(2) The Principal Commissioner of Customs or Commissioner of Customs may, without prejudice
to any other action that may be taken against the licensee and the goods under this Act or any other
law for the time being in force, suspend operation of the warehouse during the pendency of an
46
enquiry under sub-section (1).
(3) Where the operation of a warehouse is suspended under sub-section (2), no goods shall be
deposited in such warehouse during the period of suspension:
Provided that the provisions of this Chapter shall continue to apply to the goods already deposited
5
in the warehouse.
(4) Where the licence issued under section 57 or section 58 or section 58A is cancelled, the
goods warehoused shall, within seven days from the date on which order of such cancellation is
served on the licensee or within such extended period as the proper officer may allow, be removed
from such warehouse to another warehouse or be cleared for home consumption or export:
Provided that the provisions of this Chapter shall continue to apply to the goods already deposited 10
in the warehouse till they are removed to another warehouse or cleared for home consumption or
for export, during such period.”.
Substitution
of new
section for
section 59.
Warehousing
bond.
123. In the Customs Act, for section 59, the following section shall be substituted, namely:––
“59. (1) The importer of any goods in respect of which a bill of entry for warehousing has been
presented under section 46 and assessed to duty under section 17 or section 18 shall execute a 15
bond in a sum equal to thrice the amount of the duty assessed on such goods, binding himself––
(a) to comply with all the provisions of the Act and the rules and regulations made thereunder
in respect of such goods;
(b) to pay, on or before the date specified in the notice of demand, all duties and interest
20
payable under sub-section (2) of section 61; and
(c) to pay all penalties and fines incurred for the contravention of the provisions of this Act or
the rules or regulations, in respect of such goods.
(2) For the purposes of sub-section (1), the Assistant Commissioner of Customs or Deputy
Commissioner of Customs may permit an importer to execute a general bond in such amount as the
Assistant Commissioner of Customs or Deputy Commissioner of Customs may approve in respect 25
of the warehousing of goods to be imported by him within a specified period.
(3) The importer shall, in addition to the execution of a bond under sub-section (1) or sub-section
(2), furnish such security as may be prescribed.
(4) Any bond executed under this section by an importer in respect of any goods shall continue
30
to be in force notwithstanding the transfer of the goods to another warehouse.
(5) Where the whole of the goods or any part thereof are transferred to another person, the
transferee shall execute a bond in the manner specified in sub-section (1) or sub-section (2) and
furnish security as specified under sub-section (3).”.
Substitution
of new
section for
section 60.
124. In the Customs Act, for section 60, the following section shall be substituted, namely:––
Permission
for removal of
goods for
deposit in
warehouse.
“60. (1) When the provisions of section 59 have been complied with in respect of any goods, the 35
proper officer may make an order permitting removal of the goods from a customs station for the
purpose of deposit in a warehouse.
Substitution
of new
section for
section 61.
125. In the Customs Act, for section 61, the following section shall be substituted, namely:––
Period for
which goods
may remain
warehoused.
‘61.(1) Any warehoused goods may remain in the warehouse in which they are deposited or in
any warehouse to which they may be removed,––
(2) Where an order is made under sub-section (1), the goods shall be deposited in a warehouse
in such manner as may be prescribed.”.
40
(a) in the case of capital goods intended for use in any hundred per cent. export oriented
undertaking or electronic hardware technology park unit or software technology park unit or any
warehouse wherein manufacture or other operations have been permitted under section 65, till 45
their clearance from the warehouse;
(b) in the case of goods other than capital goods intended for use in any hundred per cent.
export oriented undertaking or electronic hardware technology park unit or software technology
park unit or any warehouse wherein manufacture or other operations have been permitted under
47
section 65, till their consumption or clearance from the warehouse; and
(c) in the case of any other goods, till the expiry of one year from the date on which the proper
officer has made an order under sub-section (1) of section 60:
5
Provided that in the case of any goods referred to in this clause, the Principal Commissioner of
Customs or Commissioner of Customs may, on sufficient cause being shown, extend the period for
which the goods may remain in the warehouse, by not more than one year at a time:
Provided further that where such goods are likely to deteriorate, the period referred to in the first
proviso may be reduced by the Principal Commissioner of Customs or Commissioner of Customs to
such shorter period as he may deem fit.
10
15
(2) Where any warehoused goods specified in clause (c) of sub-section (1) remain in a warehouse
beyond a period of ninety days from the date on which the proper officer has made an order under
sub-section (1) of section 60, interest shall be payable at such rate as may be fixed by the Central
Government under section 47, on the amount of duty payable at the time of clearance of the goods,
for the period from the expiry of the said ninety days till the date of payment of duty on the warehoused
goods:
Provided that if the Board considers it necessary so to do, in the public interest, it may,––
(a) by order, and under the circumstances of an exceptional nature, to be specified in such
order, waive the whole or any part of the interest payable under this section in respect of any
warehoused goods;
20
(b) by notification in the Official Gazette, specify the class of goods in respect of which no
interest shall be charged under this section;
(c) by notification in the Official Gazette, specify the class of goods in respect of which the
interest shall be chargeable from the date on which the proper officer has made an order under
sub-section (1) of section 60.
25
Explanation.–– For the purposes of this section,––
(i) “electronic hardware technology park unit” means a unit established under the Electronic
Hardware Technology Park Scheme notified by the Government of India;
(ii) ‘‘hundred per cent. export oriented undertaking” has the same meaning as in clause (ii) of
Explanation 2 to sub-section (1) of section 3 of the Central Excise Act, 1944; and
1 of 1944.
30
(iii) “software technology park unit” means a unit established under the Software Technology
Park Scheme notified by the Government of India.’.
126. In the Customs Act, sections 62 and 63 shall be omitted.
Omission of
sections 62
and 63.
127. In the Customs Act, for section 64, the following section shall be substituted, namely:––
Substitution of
new section
for section 64.
“64. The owner of any warehoused goods may, after warehousing the same,–– 35
Owner’s right
to deal with
warehoused
goods.
(a) inspect the goods;
(b) deal with their containers in such manner as may be necessary to prevent loss or deterioration
or damage to the goods;
(c) sort the goods; or
(d) show the goods for sale.”.
40
128. In the Customs Act, in section 65, in sub-section (1), for the words “With the sanction of the Amendment of
Assistant Commissioner of Customs or Deputy Commissioner of Customs and subject to such conditions section 65.
and on payment of such fees”, the words “With the permission of the Principal Commissioner of Customs
or Commissioner of Customs and subject to such conditions” shall be substituted.
129. In the Customs Act, in section 68,––
45
(i) in the opening paragraph, for the words “The importer of any warehoused goods may clear
them”, the words “Any warehoused goods may be cleared from the warehouse” shall be substituted;
(ii) for clause (b), the following clause shall be substituted, namely:––
Amendment of
section 68.
48
“(b) the import duty, interest, fine and penalties payable in respect of such goods have been
paid; and”;
(iii) in the first proviso, the words “rent, interest, other charges and” shall be omitted.
Amendment
of section 69.
130. In the Customs Act, in section 69,––
(i) in the marginal heading, for the word “exportation”, the word “export” shall be substituted;
5
(ii) in sub-section (1),––
(A) for clause (b), the following clause shall be substituted, namely:––
“(b) the export duty, fine and penalties payable in respect of such goods have been paid;
and”;
(B) in clause (c), for the word “exportation”, the word “export” shall be substituted.
10
Amendment
131. In the Customs Act, in section 71, for the word “re-exportation”, the word “export” shall be
of section 71. substituted.
Amendment
of section 72.
132. In the Customs Act, in section 72,––
(a) in sub-section (1),—
(i) clause (c) shall be omitted;
15
(ii) in clause (d), for the word “exportation”, the words “export or” shall be substituted;
(iii) in the long line, for the words “all penalties, rent, interest and other charges”, the words
“interest, fine and penalties” shall be substituted;
(b) in sub-section (2), for the word “select”, the words “deem fit” shall be substituted.
Amendment
133. In the Customs Act, in section 73, after the words “exported or”, the words “transferred or” shall 20
of section 73. be inserted.
Insertion of
new section
73A.
134. In the Customs Act, after section 73, the following section shall be inserted, namely:––
Custody and
removal of
warehoused
goods.
“73A. (1) All warehoused goods shall remain in the custody of the person who has been granted a
licence under section 57 or section 58 or section 58A until they are cleared for home consumption or are
transferred to another warehouse or are exported or removed as otherwise provided under this Act.
25
(2) The responsibilities of the person referred to in sub-section (1) who has custody of the
warehoused goods shall be such as may be prescribed.
(3) Where any warehoused goods are removed in contravention of section 71, the licensee shall
be liable to pay duty, interest, fine and penalties without prejudice to any other action that may be
30
taken against him under this Act or any other law for the time being in force.”.
Amendment
of section
156.
135. In the Customs Act, in section 156, in sub-section (2), after clause (b), the following clause
shall be inserted, namely:––
“(c) the due date and the manner of making deferred payment of duties, taxes, cesses or any
other charges under sections 47 and 51.”.
Amendment
of
notifications
issued under
section 25 of
Act 52 of
1962.
136. (1) The notifications of the Government of India in the Ministry of Finance (Department of 35
Revenue) number G.S.R. 367 (E), dated the 27th April, 2000, G.S.R. 292(E), dated the 19th April,
2002, G.S.R. 281(E), dated the 1st April, 2003, G.S.R. 604 (E), dated the 10th September, 2004,
G.S.R. 606(E), dated the 10th September, 2004 and G.S.R. 260(E), dated the 1st May, 2006 issued
under sub-section (1) of section 25 of the Customs Act, 1962 by the Central Government shall stand
amended and shall be deemed to have been amended in the manner as specified against each of 40
them in column (3) of the Second Schedule, on and from the corresponding date mentioned in column
(4) of that Schedule, retrospectively, and accordingly, notwithstanding anything contained in any
judgment, decree or order of any court, tribunal or other authority, any action taken or anything done or
purported to have been taken or done under the said notifications, shall be deemed to be, and always
to have been, for all purposes, as validly and effectively taken or done as if the notifications as amended 45
by this sub-section had been in force at all material times.
(2) For the purposes of sub-section (1), the Central Government shall have and shall be deemed to
have the power to amend the notifications referred to in the said sub-section with retrospective effect
as if the Central Government had the power to amend the said notifications under sub-section (1) of
section 25 of the Customs Act, 1962 retrospectively, at all material times.
50
49
(3) The refund shall be made of all such safeguard duty which has been collected, but would not
have been so collected, had the amendments made in sub-section (1) been in force at all material
times and such refund shall be subject to the provisions of section 27 of the Customs Act, 1962.
5
(4) Notwithstanding anything contained in section 27 of the Customs Act, 1962, an application for
the claim of refund of safeguard duty under sub-section (3) shall be made within a period of one year
from the date on which the Finance Bill, 2016 receives the assent of the President.
Customs Tariff
137. In the Customs Tariff Act, 1975 (hereinafter referred to as the Customs Tariff Act), section 8C Omission of
section 8C.
shall be omitted.
51 of 1975.
10
138. In the Customs Tariff Act, the First Schedule shall,––
(i) be amended in the manner specified in the Third Schedule;
Amendment
of First
Schedule.
(ii) be also amended in the manner specified in the Fourth Schedule with effect from the 1st day
of January, 2017.
Excise
1 of 1944.
15
139. In the Central Excise Act, 1944 (hereinafter referred to as the Central Excise Act), in section 5A,–– Amendment
of section 5A.
(i) for sub-section (5), the following sub-section shall be substituted, namely:––
“(5) Every notification issued under sub-section (1) or sub-section (2A) shall, unless otherwise provided,
come into force on the date of its issue by the Central Government for publication in the Official Gazette.”;
(ii) sub-section (6) shall be omitted.
20
140. In the Central Excise Act, in section 11A, for the words “one year”, wherever they occur, the Amendment
of section
words “two years” shall be substituted.
11A.
141. In the Central Excise Act, in section 37B, for the words “such goods”, the words “such goods or Amendment
of section
for the implementation of any other provision of this Act” shall be substituted.
142. In the Central Excise Act, the Third Schedule shall be amended––
25
(i) in the manner specified in the Fifth Schedule;
37B.
Amendment
of Third
Schedule.
(ii) in the manner specified in the Sixth Schedule, with effect from the 1st day of January, 2017.
Excise Tariff
143. In the Central Excise Tariff Act, 1985 (hereinafter referred to as the Central Excise Tariff Act), Amendment of
First Schedule.
the First Schedule shall be amended––
5 of 1986.
30
(i) in the manner specified in the Seventh Schedule;
(ii) in the manner specified in the Eighth Schedule, with effect from the 1st day of January, 2017.
144. In the Central Excise Tariff Act, the Second Schedule shall be amended in the manner specified Amendment of
Second
in the Ninth Schedule, with effect from the 1st day of January, 2017.
Schedule.
CHAPTER V
SERVICE TAX
35
32 of 1994.
145. In the Finance Act, 1994 (hereinafter referred to as the 1994 Act), in section 65B,––
(a) clause (11) shall be omitted;
Amendment
of section
65B.
(b) in clause (44), in Explanation 2, in sub-clause (ii), for item (a), the following item shall be
substituted, namely:––
40
17 of 1998.
“(a) by a lottery distributor or selling agent on behalf of the State Government, in relation to
promotion, marketing, organising, selling of lottery or facilitating in organising lottery of any kind,
in any other manner, in accordance with the provisions of the Lotteries (Regulation) Act, 1998;”.
146. In the 1994 Act, in section 66D,—
(a) clause (l) shall be omitted;
45
(b) with effect from the 1st day of June, 2016—
(i) in clause (o), sub-clause (i) shall be omitted;
Amendment
of section
66D.
50
(ii) in clause (p), sub-clause (ii) shall be omitted.
Amendment
of section
66E.
147. In the 1994 Act, in section 66E, after clause (i), the following clause shall be inserted, namely:—
Amendment
of section
67A.
148.In the 1994 Act, in section 67A, the existing section shall be renumbered as sub-section (1) 5
thereof, and after sub-section (1) as so renumbered, the following sub-section shall be inserted,
namely:––
“(j) assignment by the Government of the right to use the radio-frequency spectrum and subsequent
transfers thereof.”.
“(2) The time or the point in time with respect to the rate of service tax shall be such as may be
prescribed.”.
Amendment
of section 73.
149. In the 1994 Act, in section 73,––
10
(i) in sub-sections (1), (1A), (2A) and (3), for the words “eighteen months”, wherever they occur,
the words “thirty months” shall be substituted;
(ii) in sub-section (4B), in clause (a), for the words “whose limitation is specified as eighteen
months in”, the words “falling under” shall be substituted.
Amendment
of section 75.
150. In the 1994 Act, in section 75, for the words ‘‘Provided that’’, the following shall be substituted, 15
namely:—
‘‘Provided that in the case of a person who collects any amount as service tax but fails to pay the amount so
collected to the credit of the Central Government, on or before the date on which such payment is due, the Central
Government may, by notification in the Official Gazette, specify such other rate of interest, as it may deem necessary:
Provided further that’’.
Amendment
of section
78A.
Amendment
of section 89.
Amendment
of section 90.
Amendment
of section 91.
20
151. In the 1994 Act, in section 78A, the following Explanation shall be inserted, namely:––
“Explanation.–– For the removal of doubts, it is hereby clarified that where any service tax has not
been levied or paid or has been short-levied or short-paid or erroneously refunded, and the proceedings
with respect to a notice issued under sub-section (1) of section 73 or the proviso to sub-section (1) of
section 73 is concluded in accordance with the provisions of clause (i) of the first proviso to section 76 25
or clause (i) of the second proviso to section 78, as the case may be, the proceedings pending against
any person under this section shall also be deemed to have been concluded.”.
152. In the 1994 Act, in section 89, in sub-section (1), for the words “fifty lakh rupees”, at both the
places where they occur, the words “two hundred lakh rupees” shall be substituted.
153. In the 1994 Act, in section 90, sub-section (2) shall be omitted.
30
154. In the 1994 Act, in section 91,––
(a) in sub-section (1), the words, brackets and letter “clause (i) or” shall be omitted;
(b) sub-section (3) shall be omitted.
Amendment
of section
93A.
155. In the 1994 Act, in section 93A, for the word “prescribed”, the words “prescribed or specified by
35
notification in the Official Gazette” shall be substituted.
Insertion of new
sections 101,
102 and 103.
156. In the 1994 Act, after section 100, the following sections shall be inserted, namely:––
Special
provision for
exemption in
certain cases
relating to
construction of
canal, dam, etc.
“101. (1) Notwithstanding anything contained in section 66B, no service tax shall be levied or
collected during the period commencing from the 1st day of July, 2012 and ending with the 29th day
of January, 2014 (both days inclusive) in respect of taxable services provided to an authority or a
board or any other body––
40
(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by the Government,
with ninety per cent. or more participation by way of equity or control, to carry out any function
entrusted to a municipality under article 243W of the Constitution, by way of construction, erection,
commissioning, installation, completion, fitting out, repair, maintenance, renovation or alteration of 45
canal, dam or other irrigation works.
(2) Refund shall be made of all such service tax which has been collected but which would not
have been so collected had sub-section (1) been in force at all material times.
(3) Notwithstanding anything contained in this Chapter, an application for the claim of refund of
service tax shall be made within a period of six months from the date on which the Finance Bill, 2016 50
receives the assent of the President.
51
5
Special
provision for
exemption in
certain cases
relating to
construction of
Government
(a) a civil structure or any other original works meant predominantly for use other than for buildings.
102. (1) Notwithstanding anything contained in section 66B, no service tax shall be levied or
collected during the period commencing from the 1st day of April, 2015 and ending with the 29th day
of February, 2016 (both days inclusive), in respect of taxable services provided to the Government,
a local authority or a Governmental authority, by way of construction, erection, commissioning,
installation, completion, fitting out, repair, maintenance, renovation or alteration of––
commerce, industry or any other business or profession;
(b) a structure meant predominantly for use as––
(i) an educational establishment;
10
(ii) a clinical establishment; or
(iii) an art or cultural establishment;
(c) a residential complex predominantly meant for self-use or for the use of their employees or
other persons specified in Explanation 1 to clause (44) of section 65B of the said Act,
15
under a contract entered into before the 1st day of March, 2015 and on which appropriate stamp
duty, where applicable, had been paid before that date.
(2) Refund shall be made of all such service tax which has been collected but which would not
have been so collected had sub-section (1) been in force at all the material times.
20
25
30
(3) Notwithstanding anything contained in this Chapter, an application for the claim of refund
of service tax shall be made within a period of six months from the date on which the Finance Bill,
2016 receives the assent of the President.
103. (1) Notwithstanding anything contained in section 66B, no service tax shall be levied or
collected during the period commencing from the 1st day of April, 2015 and ending with the 29th day
of February, 2016 (both days inclusive), in respect of services provided by way of construction,
erection, commissioning or installation of original works pertaining to an airport or port, under a
contract which had been entered into before the 1st day of March, 2015 and on which appropriate
stamp duty, where applicable, had been paid before that date, subject to the condition that Ministry
of Civil Aviation or, as the case may be, the Ministry of Shipping in the Government of India certifies
that the contract had been entered into before the 1st day of March, 2015.
Special
provision for
exemption in
certain cases
relating to
construction of
airport or port.
(2) Refund shall be made of all such service tax which has been collected but which would not
have been so collected had sub-section (1) been in force at all material times.
(3) Notwithstanding anything contained in this Chapter, an application for the claim of refund of
service tax shall be made within a period of six months from the date on which the Finance Bill, 2016
receives the assent of the President.”.
32 of 1994.
157. (1) The notification of the Government of India in the Ministry of Finance (Department of Revenue)
35 number G.S.R. 519(E), dated the 29th June, 2012 issued under section 93A of the Finance Act, 1994
granting rebate of service tax paid on the taxable services which are received by an exporter of goods
and used for export of goods, shall stand amended and shall be deemed to have been amended
retrospectively, in the manner specified in column (2) of the Tenth Schedule, on and from and up to the
corresponding dates specified in column (3) of the Schedule, and accordingly, any action taken or
40 anything done or purported to have taken or done under the said notification as so amended, shall be
deemed to be, and always to have been, for all purposes, as validly and effectively taken or done as if
the said notification as amended by this sub-section had been in force at all material times.
45
Amendment of
notification
issued under
section 93A of
Finance Act,
1994.
(2) Rebate of all such service tax shall be granted which has been denied, but which would not
have been so denied had the amendment made by sub-section (1) been in force at all material
times.
(3) Notwithstanding anything contained in the Finance Act, 1994, an application for the claim of
rebate of service tax under sub-section (2) shall be made within the period of one month from the
date of commencement of the Finance Act, 2016.
32 of 1994.
CHAPTER VI
50
KRISHI KALYAN CESS
158. (1) This Chapter shall come into force on the 1st day of June, 2016.
(2) There shall be levied and collected in accordance with the provisions of this Chapter, a cess to
be called the Krishi Kalyan Cess, as service tax on all or any of the taxable services at the rate of 0.5
per cent. on the value of such services for the purposes of financing and promoting initiatives to
Krishi Kalyan
Cess.
52
improve agriculture or for any other purpose relating thereto.
(3) The Krishi Kalyan Cess leviable under sub-section (2) shall be in addition to any cess or service
tax leviable on such taxable services under Chapter V of the Finance Act, 1994, or under any other law
for the time being in force.
32 of 1944.
(4) The proceeds of the Krishi Kalyan Cess levied under sub-section (2) shall first be credited to the 5
Consolidated Fund of India and the Central Government may, after due appropriation made by
Parliament by law in this behalf, utilise such sums of money of the Krishi Kalyan Cess for such purposes
specified in sub-section (2), as it may consider necessary.
(5) The provisions of Chapter V of the Finance Act, 1994 and the rules made thereunder, including
32 of 1944.
those relating to refunds and exemptions from tax, interest and imposition of penalty shall, as far as 10
may be, apply in relation to the levy and collection of the Krishi Kalyan Cess on taxable services, as
they apply in relation to the levy and collection of tax on such taxable services under the said Chapter
or the rules made thereunder, as the case may be.
CHAPTER VII
INFRASTRUCTURE CESS
15
Infrastructure
159. (1) In the case of goods specified in the Eleventh Schedule, being goods manufactured or
Cess.
produced, there shall be levied and collected for the purposes of the Union, a duty of excise, to be
called the Infrastructure Cess, at the rates specified in the said Schedule for the purposes of financing
infrastructure projects.
(2) The cess leviable under sub-section (1), chargeable on the goods specified in the Eleventh 20
Schedule shall be in addition to any other duties of excise chargeable on such goods under the Central
Excise Act, 1944 or any other law for the time being in force.
1 of 1944.
1 of 1944.
(3) The provisions of the Central Excise Act, 1944 and the rules made thereunder, including those
relating to assessment, non-levy, short-levy, refunds, interest, appeals, offences and penalties, shall,
as far as may be, apply in relation to the levy and collection of the cess leviable under sub-section (1) 25
in respect of the goods specified in the Eleventh Schedule as they apply in relation to the levy and
collection of the duties of excise on such goods under the said Act or the rules, as the case may be.
(4) The cess leviable under sub-section (1) shall be for the purposes of the Union and the proceeds
thereof shall not be distributed among the States.
CHAPTER VIII
30
EQUALISATION LEVY
Extent,
commencement and
application.
160. (1) This Chapter extends to the whole of India except the State of Jammu and Kashmir.
(2) It shall come into force on such date as the Central Government may, by notification in the
Official Gazette, appoint.
(3) It shall apply to consideration received or receivable for specified services provided on or after 35
the commencement of this Chapter.
Definitions.
161. In this Chapter, unless the context otherwise requires,—
(a) “Appellate Tribunal” means the Appellate Tribunal constituted under section 252 of the Incometax Act;
(b) “Assessing Officer” means the Income-tax Officer or Assistant Commissioner of Income-tax 40
or Deputy Commissioner of Income-tax or Joint Commissioner of Income-tax or Additional
Commissioner of Income-tax who is authorised by the Board to exercise or perform all or any of the
powers and functions conferred on, or assigned to, an Assessing Officer under this Chapter;
(c) “Board” means the Central Board of Direct Taxes constituted under the Central Boards of
Revenue Act, 1963;
45 54 of 1963.
(d) “equalisation levy” means the tax leviable on consideration received or receivable for any
specified service under the provisions of this Chapter;
(e) “Income-tax Act” means the Income-tax Act, 1961
(f) “online” means a facility or service or right or benefit or access that is obtained through the
internet or any other form of digital or telecommunication network;
50
(g) “permanent establishment” includes a fixed place of business through which the business of
the enterprise is wholly or partly carried on;
43 of 1961.
53
(h) “prescribed” means prescribed by rules made under this Chapter;
(i) “specified service” means online advertisement, any provision for digital advertising space or
any other facility or service for the purpose of online advertisement and includes any other service
as may be notified by the Central Government in this behalf;
5
(j) words and expressions used but not defined in this Chapter and defined in the Income-tax
Act, or the rules made thereunder, shall have the meanings respectively assigned to them in
that Act.
162. (1) On and from the date of commencement of this Chapter, there shall be charged an Charge of
equalisation levy at the rate of six per cent. of the amount of consideration for any specified service equalisation
levy.
10 received or receivable by a person, being a non-resident from––
(i) a person resident in India and carrying on business or profession; or
(ii) a non-resident having a permanent establishment in India.
(2) The equalisation levy under sub-section (1) shall not be charged, where––
15
(a) the non-resident providing the specified service has a permanent establishment in India and
the specified service is effectively connected with such permanent establishment;
(b) the aggregate amount of consideration for specified service received or receivable in a previous
year by the non-resident from a person resident in India and carrying on business or profession, or
from a non-resident having a permanent establishment in India, does not exceed one lakh rupees;
or
20
(c) where the payment for the specified service by the person resident in India, or the permanent
establishment in India is not for the purposes of carrying out business or profession.
163. (1) Every person, being a resident and carrying on business or profession or a non-resident
having a permanent establishment in India (here in this Chapter referred to as assessee) shall deduct
the equalisation levy from the amount paid or payable to a non-resident in respect of the specified
25 service at the rate specified in section 162, if the aggregate amount of consideration for specified
service in a previous year exceeds one lakh rupees.
Collection
and recovery
of
equalisation
levy.
(2) The equalisation levy so deducted during any calendar month in accordance with the provisions
of sub-section (1) shall be paid by every assessee to the credit of the Central Government by the
seventh day of the month immediately following the said calendar month.
30
(3) Any assessee who fails to deduct the levy in accordance with the provisions of sub-section (1)
shall, notwithstanding such failure, be liable to pay the levy to the credit of the Central Government in
accordance with the provisions of sub-section (2).
164. (1) Every assessee shall, within the prescribed time after the end of each financial year, Furnishing of
prepare and deliver or cause to be delivered to the Assessing Officer or to any other authority or statement.
35 agency authorised by the Board in this behalf, a statement in such form, verified in such manner and
setting forth such particulars as may be prescribed, in respect of all specified services during such
financial year.
(2) An assessee who has not furnished the statement within the time prescribed under sub-section
(1) or having furnished a statement under sub-section (1), notices any omission or wrong particular
40 therein, may furnish a statement or a revised statement, as the case may be, at any time before the
expiry of two years from the end of the financial year in which the specified service was provided.
(3) Where any assessee fails to furnish the statement under sub-section (1) within the prescribed
time, the Assessing Officer may serve a notice upon such assessee requiring him to furnish the
statement in the prescribed form, verified in the prescribed manner and setting forth such particulars,
45 within such time, as may be prescribed.
165. (1) Where a statement has been made under section 164 by the assessee, such statement Processing of
statement.
shall be processed in the following manner, namely:––
(a) the equalisation levy shall be computed after making the adjustment for any arithmetical error
in the statement;
50
(b) the interest, if any shall be computed on the basis of sum deductible as computed in the
statement;
(c) the sum payable by, or the amount of refund due to, the assessee shall be determined after
adjustment of the amount computed under clause (b) against any amount paid under sub-section
(2) of section 163 or section 167 and any amount paid otherwise by way of tax or interest;
54
(d) an intimation shall be prepared or generated and sent to the assessee specifying the sum
determined to be payable by, or the amount of refund due to, him under clause (c); and
(e) the amount of refund due to the assessee in pursuance of the determination under clause (c)
shall be granted to him:
Provided that no intimation under this sub-section shall be sent after the expiry of one year from the 5
end of the financial year in which the statement is furnished.
(2) For the purposes of processing of statements under sub-section (1), the Board may make a
scheme for centralised processing of such statements to expeditiously determine the tax payable by,
or the refund due to, the assessee as required under that sub-section.
Rectification
of mistake.
166. (1) With a view to rectifying any mistake apparent from the record, the Assessing Officer may 10
amend any intimation issued under section 165, within one year from the end of the financial year in
which the intimation sought to be amended was issued.
(2) The Assessing Officer may make an amendment to any intimation under sub-section (1), either
suo motu or on any mistake brought to his notice by the assessee.
(3) An amendment to any intimation, which has the effect of increasing the liability of the assessee 15
or reducing a refund, shall not be made under this section unless the Assessing Officer has given
notice to the assessee of his intention so to do and has given the assessee a reasonable opportunity
of being heard.
(4) Where any such amendment to any intimation has the effect of enhancing the sum payable or
reducing the refund already made, the Assessing Officer shall make an order specifying the sum 20
payable by the assessee and the provisions of this Chapter shall apply accordingly.
Interest on
delayed
payment of
equalisation
levy.
Penalty for
failure to
deduct or pay
equalisation
levy.
167. Every assessee, who fails to credit the equalisation levy or any part thereof as required under
section 163 to the account of the Central Government within the period specified in that section, shall
pay simple interest at the rate of one per cent. of such levy for every month or part of a month by which
25
such crediting of the tax or any part thereof is delayed.
168. Any assessee who––
(a) fails to deduct the whole or any part of the equalisation levy as required under section 163; or
(b) having deducted the equalisation levy, fails to pay such levy to the credit of the Central
Government in accordance with the provisions of sub-section (2) of that section,
shall be liable to pay,—
30
(i) in the case referred to in clause (a), in addition to paying the levy in accordance with the
provisions of sub-section (3) of that section, or interest, if any, in accordance with the provisions
of section 167, a penalty equal to the amount of equalisation levy that he failed to deduct; and
(ii) in the case referred to in clause (b), in addition to paying the levy in accordance with the
provisions of sub-section (2) of that section and interest in accordance with the provisions of 35
section 167, a penalty of one thousand rupees for every day during which the failure continues,
so, however, that the penalty under this clause shall not exceed the amount of equalisation levy
that he failed to pay.
Penalty for
failure to
furnish
statement.
169. Where an assessee fails to furnish the statement within the time prescribed under sub-section
(1) or sub-section (3) of section 164, he shall be liable to pay a penalty of one hundred rupees for each 40
day during which the failure continues.
170. (1) Notwithstanding anything contained in section 168 or section 169, no penalty shall be
Penalty not to
be imposed in imposable for any failure referred to in the said sections, if the assessee proves to the satisfaction of
certain cases. the Assessing Officer that there was reasonable cause for the said failure.
(2) No order imposing a penalty under this Chapter shall be made unless the assessee has been 45
given a reasonable opportunity of being heard.
Appeal to
Commissioner of
Income-tax
(Appeals).
171. (1) An assessee aggrieved by an order imposing penalty under this Chapter, may appeal to
the Commissioner of Income-tax (Appeals) within a period of thirty days from the date of receipt of the
order of the Assessing Officer.
(2) An appeal under sub-section (1) shall be in such form and verified in such manner as may be 50
prescribed and shall be accompanied by a fee of one thousand rupees.
(3) Where an appeal has been filed under sub-section (1), the provisions of sections 249 to 251 of
the Income-tax Act shall, as far as may be, apply to such appeal.
55
172. (1) An assessee aggrieved by an order made by the Commissioner of Income-tax (Appeals) Appeal to
Appellate
under section 171 may appeal to the Appellate Tribunal against such order.
Tribunal.
5
(2) The Commissioner of Income-tax may, if he objects to any order passed by the Commissioner of
Income-tax (Appeals) under section 171, direct the Assessing Officer to appeal to the Appellate Tribunal
against such order.
(3) An appeal under sub-section (1) or sub-section (2) shall be filed within sixty days from the date
on which the order sought to be appealed against is received by the assessee or by the Commissioner
of Income-tax, as the case may be.
(4) An appeal under sub-section (1) or sub-section (2) shall be in such form and verified in such
manner
as may be prescribed and, in the case of an appeal filed under sub-section (1), it shall be
10
accompanied by a fee of one thousand rupees.
(5) Where an appeal has been filed before the Appellate Tribunal under sub-section (1) or
sub-section (2), the provisions of sections 253 to 255 of the Income-tax Act shall, as far as may be,
apply to such appeal.
15
2 of 1974.
173. (1) If a person makes a false statement in any verification under this Chapter or any rule made Punishment
thereunder, or delivers an account or statement, which is false, and which he either knows or believes for false
to be false, or does not believe to be true, he shall be punishable with imprisonment for a term which statement.
may extend to three years and with fine.
(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, an offence
20 punishable under sub-section (1) shall be deemed to be non-cognizable within the meaning of that
Code.
174. No prosecution shall be instituted against any person for any offence under section 173 except Institution of
prosecution.
with the previous sanction of the Chief Commissioner of Income-tax.
175. The provisions of sections 120, 131, 133A, 138, 156, Chapter XV and sections 220 to 227,
25 229, 232, 260A, 261, 262, 265 to 269, 278B, 280A, 280B, 280C, 280D, 282 and 288 to 293 of the
Income-tax Act shall so far as may be, apply in relation to equalisation levy, as they apply in relation to
income-tax.
Application of
certain
provisions of
Income-tax
Act.
176. (1) The Central Government may, by notification in the Official Gazette, make rules for carrying Power to make
rules.
out the provisions of this Chapter.
30
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may
provide for all or any of the following matters, namely:––
(a) the time within which and the form and the manner in which the statement shall be delivered
or caused to be delivered or furnished under section 164;
35
(b) the form in which an appeal may be filed and the manner in which it may be verified under
sections 171 and 172;
(c) any other matter which is to be, or may be, prescribed.
(3) Every rule made under this Chapter shall be laid, as soon as may be after it is made, before each
House of Parliament, while it is in session, for a total period of thirty days which may be comprised in
one session or in two or more successive sessions, and if, before the expiry of the session immediately
40 following the session or the successive sessions aforesaid, both Houses agree in making any
modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter
have effect only in such modified form or be of no effect, as the case may be; so, however, that any
such modification or annulment shall be without prejudice to the validity of anything previously done
under that rule.
45
177. (1) If any difficulty arises in giving effect to the provisions of this Chapter, the Central Government Power to
may, by order published in the Official Gazette, not inconsistent with the provisions of this Chapter, remove
difficulties.
remove the difficulty:
Provided that no such order shall be made after the expiry of a period of two years from the date on
which the provisions of this Chapter come into force.
50
(2) Every order made under this section shall be laid, as soon as may be after it is made, before
each House of Parliament.
56
CHAPTER IX
THE INCOME DECLARATION SCHEME, 2016
Short title and
commencement.
178. (1) This Scheme may be called the Income Declaration Scheme, 2016.
Definitions.
179. In this Scheme, unless the context otherwise requires,––
(2) It shall come into force on the 1st day of June, 2016.
5
(a) “declarant” means a person making the declaration under sub-section (1) of section 180;
(b) “Income-tax Act” means the Income-tax Act, 1961;
(c) all other words and expressions used herein but not defined and defined in the Income-tax Act
shall have the meanings respectively assigned to them in that Act.
Declaration of
180. (1) Subject to the provisions of this Scheme, any person may make, on or after the date of 10
undisclosed commencement of this Scheme but before a date to be notified by the Central Government in the
income.
Official Gazette, a declaration in respect of any income chargeable to tax under the Income-tax Act for
any assessment year prior to the assessment year beginning on the 1st day of April, 2017—
(a) for which he has failed to furnish a return under section 139 of the Income-tax Act;
(b) which he has failed to disclose in a return of income furnished by him under the Income-tax 15
Act before the date of commencement of this Scheme;
(c) which has escaped assessment by reason of the omission or failure on the part of such
person to furnish a return under the Income-tax Act or to disclose fully and truly all material facts
necessary for the assessment or otherwise.
(2) Where the income chargeable to tax is declared in the form of investment in any asset, the fair 20
market value of such asset as on the date of commencement of this Scheme shall be deemed to be the
undisclosed income for the purposes of sub-section (1).
(3) The fair market value of any asset shall be determined in such manner, as may be prescribed.
(4) No deduction in respect of any expenditure or allowance shall be allowed against the income in
25
respect of which declaration under this section is made.
181. (1) Notwithstanding anything contained in the Income-tax Act or in any Finance Act, the
Charge of tax
and
undisclosed income declared under section 180 within the time specified therein shall be chargeable
surcharge.
to tax at the rate of thirty per cent. of such undisclosed income.
(2) The amount of tax chargeable under sub-section (1) shall be increased by a surcharge, for the
purposes of the Union, to be called the Krishi Kalyan Cess on tax calculated at the rate of twenty-five 30
per cent. of such tax so as to fulfil the commitment of the Government for the welfare of the farmers.
Penalty.
182. Notwithstanding anything contained in the Income-tax Act or in any Finance Act, the person
making a declaration of undisclosed income shall, in addition to tax and surcharge under section 181,
be liable to penalty at the rate of twenty-five per cent. of such tax.
Manner of
declaration.
183. (1) A declaration under section 180 shall be made to the Principal Commissioner or the 35
Commissioner and shall be in such form and be verified in such manner, as may be prescribed.
(2) The declaration shall be signed,—
(a) where the declarant is an individual, by the individual himself; where such individual is absent
from India, by the individual concerned or by some person duly authorised by him in this behalf; and
where the individual is mentally incapacitated from attending to his affairs, by his guardian or by any 40
other person competent to act on his behalf;
(b) where the declarant is a Hindu undivided family, by the Karta, and where the Karta is absent
from India or is mentally incapacitated from attending to his affairs, by any other adult member of
such family;
(c) where the declarant is a company, by the managing director thereof, or where for any 45
unavoidable reason such managing director is not able to sign the declaration or where there is no
managing director, by any director thereof;
(d) where the declarant is a firm, by the managing partner thereof, or where for any unavoidable
reason such managing partner is not able to sign the declaration, or where there is no managing
50
partner as such, by any partner thereof, not being a minor;
(e) where the declarant is any other association, by any member of the association or the principal
43 of 1961.
57
officer thereof; and
(f) where the declarant is any other person, by that person or by some other person competent to
act on his behalf.
5
(3) Any person, who has made a declaration under sub-section (1) of section 180 in respect of his
income or as a representative assessee in respect of the income of any other person, shall not be
entitled to make any other declaration, under that sub-section in respect of his income or the income of
such other person, and any such other declaration, if made, shall be void.
184. (1) The tax and surcharge payable under section 181 and penalty payable under section 182 Time for
in respect of the undisclosed income, shall be paid on or before a date to be notified by the Central payment of
tax.
10 Government in the Official Gazette.
(2) The declarant shall file the proof of payment of tax, surcharge and penalty on or before the date
notified under sub-section (1), with the Principal Commissioner or the Commissioner, as the case may
be, before whom the declaration under section 180 was made.
(3) If the declarant fails to pay the tax, surcharge and penalty in respect of the declaration made
15 under section 180 on or before the date specified under sub-section (1), the declaration filed by him
shall be deemed never to have been made under this Scheme.
185. The amount of undisclosed income declared in accordance with section 180 shall not be included
in the total income of the declarant for any assessment year under the Income-tax Act, if the declarant
makes the payment of tax and surcharge referred to in section 181 and the penalty referred to in
20 section 182, by the date specified under sub-section (1) of section 184.
186. A declarant under this Scheme shall not be entitled, in respect of undisclosed income declared
or any amount of tax and surcharge paid thereon, to re-open any assessment or reassessment made
under the Income-tax Act or the Wealth-tax Act, 1957, or claim any set off or relief in any appeal,
reference or other proceeding in relation to any such assessment or reassessment.
Undisclosed
income
declared not
to affect
finality of
completed
assessments.
25
187. The provisions of the Benami Transactions (Prohibition) Act, 1988 shall not apply in respect of
the declaration of undisclosed income made in the form of investment in any asset, if the asset existing
in the name of a benamidar is transferred to the declarant, being the person who provides the
consideration for such asset, or his legal representative, within the period notified by the Central
Government.
Undisclosed
income
declared not
to be treated
as benami
transaction in
certain cases.
30
188. Any amount of tax and surcharge paid under section 181 or penalty paid under section 182 in Tax in respect
of voluntarily
pursuance of a declaration made under section 180 shall not be refundable.
27 of 1957.
45 of 1988.
Undisclosed
income
declared not to
be included in
total income.
disclosed
income not
refundable.
27 of 1957.
189. Notwithstanding anything contained in any other law for the time being in force, nothing contained
in any declaration made under section 180 shall be admissible in evidence against the declarant for
the purpose of any proceeding relating to imposition of penalty, other than the penalty leviable under
35 section 182, or for the purposes of prosecution under the Income-tax Act or the Wealth-tax Act, 1957.
Declaration not
admissible in
evidence
against
declarant.
190. Notwithstanding anything contained in this Scheme, where a declaration has been made by Declaration by
misrepresentation or suppression of facts, such declaration shall be void and shall be deemed never misrepresentation
of facts to be
to have been made under this Scheme.
void.
191. (1) Where the undisclosed income is represented by cash (including bank deposits), bullion, Exemption from
wealth-tax in
40 investment in shares or any other assets specified in the declaration made under section 180—
respect of
(a) in respect of which the declarant has failed to furnish a return under section 14 of the Wealth- assets specified
in declaration.
tax Act, 1957, for the assessment year commencing on or before the 1st day of April, 2015; or
27 of 1957.
(b) which have not been shown in the return of net wealth furnished by him for the said assessment
year or years; or
45
27 of 1957.
(c) which have been understated in value in the return of net wealth furnished by him for the said
assessment year or years,
then, notwithstanding anything contained in the Wealth-tax Act, 1957, or any rules made thereunder,—
50
(i) wealth-tax shall not be payable by the declarant in respect of the assets referred to in clause
(a) or clause (b) and such assets shall not be included in his net wealth for the said assessment
year or years;
58
(ii) the amount by which the value of the assets referred to in clause (c) has been understated
in the return of net wealth for the said assessment year or years, to the extent such amount does
not exceed the voluntarily disclosed income utilised for acquiring such assets, shall not be taken
into account in computing the net wealth of the declarant for the said assessment year or years.
Explanation.—Where a declaration under section 180 is made by a firm, the assets referred to 5
in sub-clause (i) or, as the case may be, the amount referred to in sub-clause (ii) shall not be
taken into account in computing the net wealth of any partner of the firm or, as the case may be,
in determining the value of the interest of any partner in the firm.
(2) The provisions of sub-section (1) shall not apply unless the conditions specified in
sub-sections (1) and (2) of section 184 are fulfilled by the declarant.
10
Applicability of
192. The provisions of Chapter XV of the Income-tax Act relating to liability in special cases and of section 189
certain
of that Act or the provisions of Chapter V of the Wealth-tax Act, 1957 relating to liability in respect of assessment
provisions of
in special cases shall, so far as may be, apply in relation to proceedings under this Scheme as they apply in
Income-tax Act
and of Chapter relation to proceedings under the Income-tax Act or, as the case may be, the Wealth-tax Act, 1957.
V of Wealthtax Act.
Scheme not
to apply to
certain
persons.
193. The provisions of this Scheme shall not apply—
27 of 1957.
15
(a) to any person in respect of whom an order of detention has been made under the Conservation
of Foreign Exchange and Prevention of Smuggling Activities Act, 1974:
52 of 1974.
Provided that—
(i) such order of detention, being an order to which the provisions of section 9 or section 12A
of the said Act do not apply, has not been revoked on the report of the Advisory Board under 20
section 8 of the said Act or before the receipt of the report of the Advisory Board; or
(ii) such order of detention, being an order to which the provisions of section 9 of the said Act
apply, has not been revoked before the expiry of the time for, or on the basis of, the review under
sub-section (3) of section 9, or on the report of the Advisory Board under section 8, read with
sub-section (2) of section 9 of the said Act; or
25
(iii) such order of detention, being an order to which the provisions of section 12A of the said
Act apply, has not been revoked before the expiry of the time for, or on the basis of, the first
review under sub-section (3) of that section, or on the basis of the report of the Advisory Board
under section 8, read with sub-section (6) of section 12A, of the said Act; or
(iv) such order of detention has not been set aside by a court of competent jurisdiction;
30
(b) in relation to prosecution for any offence punishable under Chapter IX or Chapter XVII of the
Indian Penal Code, the Narcotic Drugs and Psychotropic Substances Act, 1985, the Unlawful Activities
(Prevention) Act, 1967 and the Prevention of Corruption Act, 1988;
45 of
61 of
37 of
49 of
1860.
1985.
1967.
1988.
(c) to any person notified under section 3 of the Special Court (Trial of Offences Relating to
Transactions in Securities) Act, 1992;
35 27 of 1992.
(d) in relation to any undisclosed foreign income and asset which is chargeable to tax under the
Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015;
(e) in relation to any undisclosed income chargeable to tax under the Income-tax Act for any
previous year relevant to an assessment year prior to the assessment year beginning on the 1st day
of April, 2017—
40
(i) where a notice under section 142 or sub-section (2) of section 143 or section 148 or section
153A or section 153C of the Income-tax Act has been issued in respect of such assessment year
and the proceeding is pending before the Assessing Officer; or
(ii) where a search has been conducted under section 132 or requisition has been made under
section 132A or a survey has been carried out under section 133A of the Income-tax Act in a 45
previous year and a notice under sub-section (2) of section 143 for the assessment year relevant
to such previous year or a notice under section 153A or under section 153C of the said Act for an
assessment year relevant to any previous year prior to such previous year has not been issued
and the time for issuance of such notice has not expired; or
(iii) where any information has been received by the competent authority under an agreement 50
entered into by the Central Government under section 90 or section 90A of the Income-tax Act in
respect of such undisclosed asset.
22 of 2015.
59
194. For the removal of doubts, it is hereby declared that—
Removal of
doubts.
(a) save as otherwise expressly provided in sub-section (1) of section 180, nothing contained in
this Scheme shall be construed as conferring any benefit, concession or immunity on any person
other than the person making the declaration under this Scheme;
5
10
(b) where any declaration has been made under section 180 but no tax, surcharge and penalty
referred to in section 181 and section 182 has been paid within the time specified under section
184, the undisclosed income shall be chargeable to tax under the Income-tax Act in the previous
year in which such declaration is made;
(c) where any income has accrued, arisen or received or any asset has been acquired out of
such income prior to commencement of this Scheme, and no declaration in respect of such income
is made under this Scheme,—
(i) such income shall be deemed to have accrued, arisen or received, as the case may be; or
(ii) the value of the asset acquired out of such income shall be deemed to have been acquired
or made,
15
in the year in which a notice under section 142, sub-section (2) of section 143 or section 148 or
section 153A or section 153C of the Income-tax Act is issued by the Assessing Officer, and the
provisions of the Income-tax Act shall apply accordingly.
195. (1) If any difficulty arises in giving effect to the provisions of this Scheme, the Central Government Power to
remove
may, by order, not inconsistent with the provisions of this Scheme, remove the difficulty:
difficulties.
20
Provided that no such order shall be made after the expiry of a period of two years from the date on
which the provisions of this Scheme shall come into force.
(2) Every order made under this section shall be laid before each House of Parliament.
196. (1) The Board may, subject to the control of the Central Government, by notification in the Power to
make rules.
Official Gazette, make rules for carrying out the provisions of this Scheme.
25
(2) Without prejudice to the generality of the foregoing power, such rules may provide for the form in
which a declaration may be made under section 180 and the manner in which the same may be
verified.
(3) Every rule made under this Scheme shall be laid, as soon as may be, after it is made, before
each House of Parliament, while it is in session, for a total period of thirty days, which may be comprised
30 in one session or in two or more successive sessions, and if, before the expiry of the session immediately
following the session or the successive sessions aforesaid, both Houses agree in making any
modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter
have effect only in such modified form or be of no effect, as the case may be; so, however, that any
such modification or annulment shall be without prejudice to the validity of anything previously done
35 under that rule.
40
45
43 of 1961.
50
55
CHAPTER X
THE DIRECT TAX DISPUTE RESOLUTION SCHEME, 2016
197. (1) This Scheme may be called the Direct Tax Dispute Resolution Scheme, 2016.
(2) It shall come into force on the 1st day of June, 2016.
198. (1) In this Scheme, unless the context otherwise requires,—
(a) “declarant” means a person making a declaration under section 199;
(b) “designated authority” means an officer not below the rank of a Commissioner of Income-tax
and notified by the Principal Chief Commissioner for the purposes of this Scheme;
(c) “disputed income”, in relation to an assessment year, means the whole or so much of the total
income as is relatable to the disputed tax;
(d) “disputed tax” means the tax determined under the Income-tax Act, or the Wealth-tax Act,
which is disputed by the assessee or the declarant, as the case may be;
(e) “disputed wealth”, in relation to an assessment year, means the whole or so much of the net
wealth as is relatable to the disputed tax;
(f) “Income-tax Act” means the Income-tax Act, 1961;
(g) ‘‘specified tax’’ means a tax—
(i) the determination of which is in consequence of or validated by any amendment made to
the Income-tax Act or the Wealth-tax Act with retrospective effect and relates to a period prior to
the date on which the Act amending the Income-tax Act or the Wealth-tax Act, as the case may
be, received the assent of the President; and
(ii) a dispute in respect of such tax is pending as on the 29th day of February, 2016;
(h) “tax arrear” means, the amount of tax, interest or penalty determined under the Income-tax Act or the
Short title and
commencement.
Definitions.
60
Wealth-tax Act, 1957 in respect of which appeal is pending before the Commissioner of Income-tax
27 of 1957.
(Appeals) or the Commissioner of Wealth-tax (Appeals) as on the 29th day of February, 2016;
27 of 1957.
(h) “Wealth-tax Act” means the Wealth-tax Act, 1957.
(2) All other words and expressions used herein but not defined and defined in the Income-tax Act or the
Wealth-tax Act, as the case may be, shall have the meanings respectively assigned to them in those Acts.
5
199. Subject to the provisions of this Scheme, where a declarant files, on or after the 1st day of June, 2016 but
Declaration
of tax
on or before a date to be notified by the Central Government in the Official Gazette, a declaration to the designated
payable.
authority in accordance with the provisions of section 200 in respect of tax arrear, or specified tax, then,
notwithstanding anything contained in the Income-tax Act or the Wealth-tax Act or any other provision of any law for
the time being in force, the amount payable under this Scheme by the declarant shall be as under, namely:––
10
(I) in case of pending appeal related to tax arrear being––
(a) tax and interest,—
(i) in a case where the disputed tax does not exceed ten lakh rupees, the whole of the disputed tax and
the interest on disputed tax till the date of assessment or reassessment, as the case may be; or
(ii) in any other case, the whole of disputed tax, twenty-five per cent. of the minimum penalty leviable and 15
the interest on disputed tax till the date of assessment or reassessment, as the case may be;
(b) penalty, twenty-five per cent. of the minimum penalty leviable and the tax and interest
payable on the total income finally determined.
(II) in case of specified tax, the amount of such tax so determined.
Particulars to
200. (1) A declaration under section 199 shall be made to the designated authority in such form and 20
be furnished. verified in such manner as may be prescribed.
(2) Where the declaration is in respect of tax arrear, consequent to such declaration, appeal in respect of the
disputed income, disputed wealth and tax arrear pending before the Commissioner of Income-tax (Appeals) or the
Commissioner of Wealth-tax (Appeals), as the case may be, shall be deemed to have been withdrawn.
25
(3) Where the declaration is in respect of specified tax and the declarant has,—
(a) filed any appeal before the Commissioner of Income-tax (Appeals) or the Commissioner of
Wealth-tax (Appeals) or the Appellate Tribunal or the High Court or the Supreme Court or any writ
petition before the High Court or the Supreme Court against any order in respect of the specified tax,
he shall withdraw such appeal or writ petition with the leave of the court wherever required and
furnish proof of such withdrawal along with the declaration referred to in sub-section (1);
30
(b) initiated any proceeding for arbitration, conciliation or mediation or has given any notice
thereof under any law for the time being in force or under any agreement entered into by India with
any other country or territory outside India whether for protection of investment or otherwise, he shall
withdraw such notice or the claim, if any, in such proceedings prior to making the declaration and
furnish proof thereof along with the declaration referred to in sub-section (1).
35
(4) Where the declaration is in respect of specified tax, the declarant shall, without prejudice to the
provisions of sub-section (3), furnish an undertaking, in such form and verified in such manner as may
be prescribed, waiving his right, whether direct or indirect, to seek or pursue any remedy or any claim in
relation to the specified tax which may otherwise be available to him under any law for the time being in
force, in equity, by statute or under an agreement referred to in clause (b) of sub-section (3) or otherwise. 40
(5) Where,—
(a) any material particular furnished in the declaration is found to be false at any stage; or
(b) the declarant violates any of the conditions referred to in this Scheme; or
(c) the declarant acts in a manner which is not in accordance with the undertaking given by him
under sub-section (4),
45
it shall be presumed as if the declaration was never made under the Scheme and all the
consequences under the Income-tax Act or the Wealth- tax Act, as the case may be, under which the
proceedings against the declarant are or were pending, shall be deemed to have been revived.
(6) No appellate authorithy or arbitrator, conciliator or mediator shall proceed to decide any issue relating to the
specified tax mentioned in the declaration and in respect of which an order had been made under sub-section (1) 50
of section 201 by the designated authority or the payment of the sum determined under that section.
Time and
manner of
201. (1) The designated authority shall, within a period of sixty days from the date of receipt of the declaration,
payment.
determine the amount payable by the declarant in accordance with the provisions of this Scheme and grant a
certificate in such form as may be prescribed, to the declarant setting forth therein the particulars of the tax arrear
or the specified tax, as the case may be, and the sum payable after such determination.
55
(2) The declarant shall pay the sum determined by the designated authority as per the certificate
granted under clause (a) of sub-section (1) within thirty days of the date of receipt of the certificate and
intimate the fact of such payment to the designated authority along with proof thereof and the designated
authority shall thereupon pass an order stating that the declarant has paid the sum.
(3) Every order passed under sub-section (2), determining the sum payable under this Scheme, shall 60
be conclusive as to the matters stated therein and no matter covered by such order shall be re-opened in
any other proceeding under the Income-tax Act or the Wealth-tax Act or under any other law for the time
being in force, or as the case may be, under any agreement, whether for protection of investment or
Immunity from otherwise, entered into by India with any other country or territory outside India.
initiation of
202. The designated authority shall, subject to the conditions provided in section 201, grant—
proceedings in
65
respect of offence
(a) immunity from instituting any proceedings in respect of an offence under the Income-tax Act
and imposition of
penalty in certain
cases.
61
5
10
15
20
25
30
52 of 1974.
35
40
45 of
37 of
61 of
49 of
1860.
1967.
1985.
1988.
45
50
27 of 1992.
55
60
65
or the Wealth-tax Act, as the case may be; or,
(b) immunity from imposition or waiver, as the case may be, of penalty under the Income-tax Act
or the Wealth-tax Act, as the case may be, in respect of,—
(i) specified tax covered in the declaration under section 199; or
(ii) tax arrear covered in the declaration to the extent the penalty exceeds the amount of
penalty referred to in clause (j) of section 199;
(c) waiver of interest under the Income-tax Act or the Wealth-tax Act, as the case may be, in respect of,—
(i) specified tax covered in the declaration under the section 199;
(ii) tax arrear covered in the declaration to the extent the interest exceeds the amount of
interest referred to in sub-clause (a) of clause (I) of section 199.
203. Any amount paid in pursuance of a declaration made under section 199 shall not be refundable
under any circumstances.
204. Save as otherwise expressly provided in sub-section (3) of section 201 and section 202, nothing
contained in this Scheme shall be construed as conferring any benefit, concession or immunity on the declarant
in any proceedings other than those in relation to which the declaration has been made.
205. The provisions of this Scheme shall not apply—
(a) in respect of tax arrear or specified tax,––
(i) relating to an assessment year in respect of which an assessment has been made under section
153A or 153C of the Income-tax Act or assessment or reassessment for any of the assessment years,
in consequence of a search initiated under section 37A or requisition made under section 37B of the
Wealth-tax Act if it relates to any tax arrear;
(ii) relating to an assessment or reassessment in respect of which a survey conducted under section
133A of the Income-tax Act or section 38A of the Wealth-tax Act, has a bearing if it relates to any tax arrear;
(iii) relating to an assessment year in respect of which prosecution has been instituted on or before
the date of filing of declaration under section 199;
(iv) relating to any undisclosed income from a source located outside India or undisclosed asset
located outside India;
(v) relating to an assessment or reassessment made on the basis of information received under an
agreement referred to in section 90 or section 90A of the Income-tax Act, if it relates to any tax arrear;
(b) to any person in respect of whom an order of detention has been made under the provisions of the
Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974:
Provided that—
(i) such order of detention, being an order to which the provisions of section 9 or section 12A of the
said Act do not apply, has not been revoked on the report of the Advisory Board under section 8 of the
said Act or before the receipt of the report of the Advisory Board; or
(ii) such order of detention, being an order to which the provisions of section 9 of the said Act apply,
has not been revoked before the expiry of the time for, or on the basis of, the review under sub-section
(3) of section 9, or on the report of the Advisory Board under section 8, read with
sub-section (2) of section 9, of the said Act; or
(iii) such order of detention, being an order to which the provisions of section 12A of the said Act
apply, has not been revoked before the expiry of the time for, or on the basis of, the first review under
sub-section (3) of that section, or on the basis of the report of the Advisory Board under section 8, read
with sub-section (6) of section 12A, of the said Act; or
(iv) such order of detention has not been set aside by a court of competent jurisdiction;
(c) to any person in respect of whom prosecution for any offence punishable under the provisions of the
Indian Penal Code, the Unlawful Activities (Prevention) Act, 1967, the Narcotic Drugs and Psychotropic
Substances Act, 1985, the Prevention of Corruption Act, 1988 or for the purpose of enforcement of any civil
liability has been instituted on or before the filing of the declaration or such person has been convicted of
any such offence punishable under any of those Acts;
(d) to any person notified under section 3 of the Special Court (Trial of Offences Relating to Transactions
in Securities) Act, 1992.
206.(1) The Central Government may, from time to time, issue such directions or orders to the authorities,
as it may deem fit, for the proper administration of this Scheme:
Provided that no direction or order shall be issued so as to require any designated authority to dispose of a
particular case in a particular manner.
(2) Without prejudice to the generality of the foregoing power, the Central Government may, if it considers
necessary or expedient so to do, for the purpose of proper and efficient administration of the Scheme and
collection of revenue, issue, from time to time, general or special orders in respect of any class of cases,
setting forth directions or instructions as to the guidelines, principles or procedures to be followed by the
authorities in the work relating to administration of the Scheme and collection of revenue and any such
order may, if the Central Government is of the opinion that it is necessary in the public interest so to do,
be published in the Official Gazette in such manner as may be prescribed.
207. (1) If any difficulty arises in giving effect to the provisions of this Scheme, the Central Government
may, by order, not inconsistent with the provisions of this Scheme, remove the difficulty:
Provided that no such order shall be made after the expiry of a period of two years from the date on
which the provisions of this Scheme come into force.
(2) Every order made under this section shall, as soon as may be after it is made, be laid before
each House of Parliament.
No refund of
amount paid under
Scheme.
No other benefit,
concession or
immunity to
declarant.
Scheme not to
apply in
certain cases.
Power of
Central
Government
to issue
directions,
etc.
Power to
remove
difficulties.
62
Power to
make rules.
208. (1) The Central Government may, by notification in the Official Gazette, make rules for carrying
out the provisions of this Scheme.
(2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any
of the following matters, namely:––
(a) the form in which a declaration may be made and the manner in which such declaration may 5
be verified under sub-section (1) of section 200 ;
(b) the form of certificate which may be granted under sub-section (1) of section 201;
(c) the manner in which orders may be published under sub-section (2) of section 206;
(d) any other matter which by this scheme is to be, or may be, prescribed, or in respect of which
10
provision is to be made, by rules.
(3) Every rule made by the Central Government under this Scheme shall be laid, as soon as may be
after it is made, before each House of Parliament, while it is in session, for a total period of thirty days,
which may be comprised in one session or in two or more successive sessions, and if, before the
expiry of the session immediately following the session or the successive sessions aforesaid, both
Houses agree in making any modification in the rule or both Houses agree that the rule should not be 15
made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case
may be; so, however, that any such modification or annulment shall be without prejudice to the validity
of anything previously done under that rule.
CHAPTER XI
20
THE INDIRECT TAX DISPUTE RESOLUTION SCHEME, 2016
Short title,
application
and
commencement.
209. (1) This Scheme may be called the Indirect Tax Dispute Resolution Scheme, 2016.
Definitions.
210. (1) In this Scheme, unless the context otherwise requires,—
(2) It shall be applicable to the declarations made up to the 31st day of December, 2016.
(3) It shall come into force on the 1st day of June, 2016.
(a) “Act” means the Customs Act, 1962 or the Central Excise Act, 1944 or Chapter V of the 25 52 of 1962.
1 of 1944.
Finance Act, 1994, as the case may be;
32 of 1994.
(b) “Assistant Commissioner” means the Assistant Commissioner of Customs or the Assistant
Commissioner of Central Excise or the Assistant Commissioner of Service Tax, as the case may be;
(c) “Commissioner” means the Commissioner of Customs or the Commissioner of Central Excise
30
or the Commissioner of Service Tax, as the case may be;
(d) “declarant” means any person who makes a declaration under sub-section (1) of section 211;
(e) “designated authority” means an officer not below the rank of Assistant Commissioner who is
authorised to act as Assistant Commissioner by the Commissioner for the purposes of this Scheme;
(f) “impugned order” means any order which is under challenge before the Commissioner (Appeals);
(g) “indirect tax dispute” means a dispute in respect of any of the provisions of the Act which is 35
pending before the Commissioner (Appeals) as an appeal against the impugned order as on the 1st
day of March, 2016;
(h) “prescribed” means prescribed by rules made under this Scheme;
(i) “tax” includes duty or tax levied under the Act.
(2) Words and expressions used herein and not defined but defined in the Act or the rules made 40
thereunder shall have the meanings respectively assigned to them in the Act or the rules made
thereunder.
211. (1) Subject to the provisions of this Scheme, a person may make a declaration to the
Procedure for
making
designated authority on or before the 31st day of December, 2016 in such form and manner as may
declaration.
45
be prescribed.
(2) The designated authority shall acknowledge the declaration in such form and manner as may
be prescribed.
(3) The declarant shall pay tax due alongwith the interest thereon at the rate as provided in the Act
and penalty equivalent to twenty-five per cent. of the penalty imposed in the impugned order, within
fifteen days of the receipt of acknowledgement under sub-section (2) and intimate the designated 50
50
63
authority within seven days of making such payment giving the details of payment made along with
the proof thereof.
5
(4) On receipt of the proof of payment of tax, interest and penalty under sub-section (3), the designated
authority shall, within fifteen days of the receipt of such proof, pass an order of discharge of dues
referred to in sub-section (3) in such form as may be prescribed.
212. The provisions of this Scheme shall not apply, if—
(a) the impugned order is in respect of search and seizure proceeding; or
Scheme not
to apply in
certain cases.
(b) prosecution for any offence punishable under the Act has been instituted before the 1st day of
June, 2016; or
10
(d) impugned order is in respect of any offence punishable under the Indian Penal Code, the
Narcotic Drugs and Psychotropic Substances Act, 1985 or the Prevention of Corruption
Act, 1988; or
45 of 1860.
61 of 1985.
49 of 1988.
52 of 1974.
(c) the impugned order is in respect of narcotic drugs or other prohibited goods; or
15
(e) any detention order has been passed under the Conservation of Foreign Exchange and
Prevention of Smuggling Act, 1974.
213. (1) Notwithstanding anything contained in any provision of the Act, upon the passing of an
order under sub-section (4) of section 211, the appeal pending before the Commissioner (Appeals)
shall stand disposed of and the declarant shall get immunity from all proceedings under the Act, in
respect of the indirect tax dispute for which the declaration has been made under this Scheme.
20
Immunity
from other
proceedings
under Act.
(2) A declaration made under sub-section (1) of section 211 shall become conclusive upon the
issuance of an order under sub-section (4) of section 211 and no matter relating to the impugned order
shall be reopened thereafter in any proceedings under the Act before any authority or court.
214. (1) Any amount paid in pursuance of a declaration made under sub-section (1) of section 211 Consequences
of order
shall not be refunded.
made under
(2) Any order passed under sub-section (4) of section 211 shall not be deemed to be an order on Scheme.
25
merits and has no binding effect.
Explanation.–– For the removal of doubts, it is hereby declared that nothing contained in this Scheme
shall be construed as conferring any benefit, concession or immunity on the declarant other than the
benefit, concession or immunity granted under section 213.
30
215. (1) The Central Government may, by notification in the Official Gazette, make rules for carrying Power to
make rules.
out the provisions of this Scheme.
(2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any
of the following matters, namely:––
35
(a) the form and the manner in which a declaration may be made under sub-section (1) of
section 211;
(b) the form and the manner of acknowledging the declaration under sub-section (2) of
section 211;
(c) the form and the manner of issuing an order of discharge under sub-section (4) of section 211;
40
(d) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be
made, by rules.
(3) Every rule made under this Scheme shall be laid, as soon as may be after it is made, before
each House of Parliament, while it is in session, for a total period of thirty days which may be comprised
in one session or in two or more successive sessions, and if, before the expiry of the session immediately
following the session or the successive sessions aforesaid, both Houses agree in making any
45 modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter
have effect only in such modified form or be of no effect, as the case may be; so, however, that any
such modification or annulment shall be without prejudice to the validity of anything previously done
under that rule.
64
CHAPTER XII
MISCELLANEOUS
PART I
AMENDMENTS TO THE RESERVE BANK OF INDIA ACT, 1934.
Commencement
and Amendment
of Act 2 of 1934.
216. The provisions of this Part shall come into force on such date as the Central Government may, 5
by notification in the Official Gazette, appoint.
Amendment
217. In the Reserve Bank of India Act,1934 (herein referred to as the principal Act), in the Preamble,
of Preamble. for paragraphs 2 and 3, the following paragraphs shall be substituted, namely:––
2 of 1934.
“AND WHEREAS it is essential to have a modern monetary policy framework to meet the challenge of
10
an increasingly complex economy;
AND WHEREAS the primary objective of the monetary policy is to maintain price stability while keeping
in mind the objective of growth;
AND WHEREAS the monetary policy framework in India shall be operated by the Reserve Bank of
India;”.
Amendment
of section 2.
218. In section 2 of the principal Act,––
15
(i) after clause (b), the following clause shall be inserted, namely:––
‘(bva) “Consumer Price Index” means the Consumer Price Index Combined published by the
Government of India from time to time;’;
(ii) after clause (c), the following clauses shall be inserted, namely:––
‘(ci) “inflation” means the year wise change in monthly Consumer Price Index expressed in 20
terms of percentage;
(cii) “inflation target” means the inflation target determined in accordance with sub-section (1)
of section 45ZA;’;
(iii) after clause (cc), the following clauses shall be inserted, namely:––
‘(cci) “Monetary Policy Committee” means the Committee constituted under sub-section (1) of 25
section 45ZB;’;
(iv) after clause (cccc), the following clauses shall be inserted, namely:––
‘(cccci) “prescribed” means prescribed by the rules made by the Central Government;
(ccccii) “Policy Rate” means the rate for repo-transactions under sub-section (12AB) of
30
section 17;’.
Insertion of
new Chapter
III F.
219. After Chapter III E of the principal Act, the following Chapter shall be inserted, namely:––
“CHAPTER III F
MONETARY POLICY
Provisions of
this Chapter to
override other
provisions of
Act.
45Z. The provisions of this Chapter shall have effect, notwithstanding anything inconsistent
35
therewith contained in any other provisions of this Act.
Inflation
target.
45ZA. (1) The Central Government shall, in consultation with the Bank, determine the inflation
target in terms of the Consumer Price Index, once in every five years.
(2) The Central Government shall, upon such determination, notify the inflation target in the
Official Gazette.
Constitution
of Monetary
Policy
Committee.
45ZB. (1) The Central Government may, by notification in the Official Gazette, constitute a 40
Committee to be called the Monetary Policy Committee of the Bank.
(2) The Monetary Policy Committee shall consist of the following Members, namely:–
(a) the Governor of the Bank— Chairperson, ex officio;
(b) Deputy Governor of the Bank, in charge of Monetary Policy— Member, ex officio;
(c) one officer of the Bank to be nominated by the Central Board— Member, ex officio; and
45
65
(d) three persons to be appointed by the Central Government— Members.
(3) The Monetary Policy Committee shall determine the Policy Rate required to achieve the
inflation target.
(4) The decision of the Monetary Policy Committee shall be binding on the Bank.
5
45ZC. (1) The Members of the Monetary Policy Committee referred to in clause (d) of subsection (2) of section 45ZB shall be appointed by the Central Government from amongst persons of
ability, integrity and standing, having knowledge and experience in the field of economics or banking
or finance or monetary policy:
Provided that no person shall be appointed as a Member, in case such person––
10
Eligibility and
selection of
Members
appointed by
Central
Government.
(i) has completed the age of seventy years on the date of appointment as Member;
(ii) is a Member of any Board or Committee of the Bank;
(iii) is an employee of the Bank;
45 of 1860.
(iv) is a public servant as defined under section 21 of the Indian Penal Code;
(v) is a Member of Parliament or any State Legislature;
15
(vi) has been at any time, adjudged as an insolvent;
(vii) has been convicted of an offence which is punishable with an imprisonment for a term of
one hundred and eighty days or more;
(viii) is physically or mentally incapable of discharging the duties of a Member of the Monetary
Policy Committee; or
20
(ix) has a material conflict of interest with the Bank and is unable to resolve such conflict.
(2) The Members of the Monetary Policy Committee referred to in clause (d) of sub-section (2) of
section 45ZB shall be appointed by the Central Government on the recommendations made by
Search-cum-Selection Committee consisting of the following members, namely:––
(a) Cabinet Secretary— Chairperson;
25
(b) Governor of the Reserve Bank of India— member;
(c) Secretary, Department of Economic Affairs— member;
(d) three experts in the field of economics or banking or finance or Monetary policy to be
nominated by the Central Government— members.
30
(3) While selecting the Members of the Monetary Policy Committee, the Search-cum-Selection
Committee shall follow such procedure as may be prescribed.
45ZD. (1) The Members of the Monetary Policy Committee appointed under clause (d) of Terms and
sub-section (2) of section 45ZB shall hold office for a period of four years and shall not be eligible for conditions of
appointment
re-appointment.
of Members
of Monetary
(2) The terms and conditions of appointment of Members of the Monetary Policy Committee shall be Policy
35 such as may be prescribed and the remuneration and other allowances payable to such Members Committee.
shall be such as may be specified by the regulations made by the Central Board.
40
(3) A Member may resign from the Monetary Policy Committee, at any time before the expiry of
his tenure under sub-section (1), by giving to the Central Government, a written notice of not less
than six weeks, and on the acceptance of the resignation by the Central Government, he shall
cease to be a Member of the Monetary Policy Committee.
45ZE. (1) The Central Government may remove from office any Member of the Monetary Policy Removal of
Members of
Committee appointed under clause (d) of sub-section (2) of section 45ZB, who—
(a) is, or at any time has been, adjudged as an insolvent; or
(b) has become physically or mentally incapable of acting as a Member; or
45
(c) has been convicted of an offence which, in the opinion of the Central Government, involves
moral turpitude; or
(d) has failed to adequately disclose any material conflict of interest at the time of his
appointment; or
50
(e) does not attend three consecutive meetings of the Monetary Policy Committee without
obtaining prior leave; or
Monetary Policy
Committee.
Customs
66
(f) has acquired such financial or other interest as is likely to affect prejudicially his functions
as a Member; or
(g) has acquired any post referred to in clauses (ii), (iii), (iv) and clause (v) of the proviso to
sub-section (1) of section 45ZC; or
(h) has, in the opinion of the Central Government, so abused his position as to render his 5
continuance in office detrimental to the public interest.
(2) No Member appointed under clause (d) of sub-section (2) of section 45ZB shall be removed
under clause (d) or clause (e) or clause (f) or clause (g) or clause (h) of sub-section (1) unless he
has been given a reasonable opportunity of being heard in the matter.
Vacancies,
etc., not to
invalidate
proceedings of
Monetary
Policy
Committee.
45ZF. No act or proceeding of the Monetary Policy Committee shall be invalid merely by reason 10
of—
(a) any vacancy in, or any defect in the constitution of the Monetary Policy Committee; or
(b) any defect in the appointment of a person acting as a Member of the Monetary Policy
Committee; or
(c) any irregularity in the procedure of the Monetary Policy Committee not affecting the merits 15
of the case.
Secretary to
Monetary
Policy
Committee.
45ZG. (1) The Bank shall appoint a Secretary to the Monetary Policy Committee to provide
secretariat support to the said Committee.
Information for
Monetary
Policy
Committee
Members.
45ZH. (1) The Bank shall provide all information to the Members of the Monetary Policy Committee
that may be relevant to achieve the inflation target.
(2) The Secretary shall perform such functions and in such manner as may be specified by the
regulations made by the Central Board.
20
(2) In addition to information provided by the Bank under sub-section (1), any Member of the
Monetary Policy Committee may, at any time, request the Bank for additional information, including
25
any data, models or analysis.
(3) The Bank shall provide the information, as referred to in sub-section (2), to the Member of the
Monetary Policy Committee, within reasonable time, unless—
(a) the information pertains to an entity or person and is not publicly available; or
(b) the information allows an entity or person to be identified and the information is not publicly
30
available.
(4) Any information provided by the Bank to a Member of the Monetary Policy Committee shall be
provided to all the Members of the Monetary Policy Committee.
Meetings of
Monetary
Policy
Committee.
45ZI. (1) The Bank shall organise at least four meetings of the Monetary Policy Committee in a
year.
(2) The meeting schedule of the Monetary Policy Committee for a year shall be published by the 35
Bank at least one week before the first meeting in that year.
(3) The meeting schedule may be changed only––
(a) by way of a decision taken at a prior meeting of the Monetary Policy Committee; or
(b) if, in the opinion of the Governor, an additional meeting is required or a meeting is required
40
to be rescheduled due to administrative exigencies.
(4) Any change in meeting schedule shall be published by the Bank as soon as practicable.
(5) The quorum for a meeting of the Monetary Policy Committee shall be four Members, at least
one of whom shall be the Governor and in his absence, the Deputy Governor who is the Member of
the Monetary Policy Committee.
(6) The meetings of the Monetary Policy Committee shall be presided over by the Governor, and 45
in his absence by the Deputy Governor who is a Member of the Monetary Policy Committee.
(7) Each Member of the Monetary Policy Committee shall have one vote.
(8) All questions which come up before any meeting of the Monetary Policy Committee shall be
decided by a majority of votes by the Members present and voting, and in the event of an equality of
67
votes, the Governor shall have a second or casting vote.
(9) The Central Government may, if it considers necessary, convey its views in writing to the
Monetary Policy Committee from time to time.
5
(10) The vote of each Member of the Monetary Policy Committee for a proposed resolution shall
be recorded against such Member.
(11) Each Member of the Monetary Policy Committee shall write a statement specifying the reasons
for voting in favour of, or against the proposed resolution.
10
(12) The procedure, conduct, code of confidentiality and any other incidental matter for the
functioning of the Monetary Policy Committee shall be such as may be specified by the regulations
made by the Central Board.
(13) The proceeding of the Monetary Policy Committee shall be confidential.
45ZJ. (1) The Bank shall publish a document explaining the steps to be taken by it to implement
the decisions of the Monetary Policy Committee, including any changes thereto.
15
(2) The particulars to be included in such document and the frequency of publications of such
document shall be such as may be specified by the regulations made by the Central Board.
Steps to be taken
to implement
decisions of
Monetary Policy
Committee.
45ZK. The Bank shall publish, after the conclusion of every meeting of the Monetary Policy Publication of
decisions.
Committee, the resolution adopted by the said Committee;
45ZL. The Bank shall publish, on the fourteenth day after every meeting of the Monetary Policy Publication of
Committee, the minutes of the proceedings of the meeting which shall include the following, namely;— proceedings
20
(a) the resolution adopted at the meeting of the Monetary Policy Committee;
(b) the vote of each member of the Monetary Policy Committee, ascribed to such member, on
resolutions adopted in the said meeting; and
of meeting of
Monetary
Policy
Committee.
(c) the statement of each member of the Monetary Policy Committee under sub-section (11) of
section 45ZL on the resolutions adopted in the said meeting.
25
45ZM. (1) The Bank shall, once in every six months, publish a document to be called the Monetary Monetary
Policy
Policy Report, explaining—
Report.
(a) the sources of inflation; and
(b) the forecasts of inflation for the period between six to eighteen months from the date of
publication of the document.
30
(2) The form and contents of the Monetary Policy Report shall be such as may be specified by the
regulations made by the Central Board.
45ZN. Where the Bank fails to meet the inflation target, it shall set out in a report to the Central Failure to
maintain
Government––
inflation target.
(a) the reasons for failure to achieve the inflation target;
35
(b) remedial actions proposed to be taken by the Bank; and
(c) an estimate of the time-period within which the inflation target shall be achieved pursuant
to timely implementation of proposed remedial actions.
40
Explanation.— For the purposes of this section, the factors that constitute failure shall be such
as may be notified by the Central Government in the Official Gazette, within three months from
the date of the commencement of Part I of Chapter XII of the Finance Act, 2016.
45ZO. (1) The Central Government may, by notification in the Official Gazette, make rules for the Power to
make rules.
purpose of carrying out the provisions of this Chapter.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may
provide for––
45
(a) the procedure of functioning of the Search-cum- Selection Committee under sub-section (4)
of section 45ZC;
(b) the terms and conditions of appointment, (other than the remuneration and other allowances),
of Members of the Monetary Policy Committee under sub-section (2) of section 45ZD; and
(c) any other matter which is to be, or may be, prescribed by the Central Government by rules.”.
68
Amendment
of section 58.
220. In section 58 of the principal Act, in sub-section (2), after clause (q), the following clauses shall
be inserted, namely:––
“(qa) the remuneration and other allowances payable to Members of the Monetary Policy
Committee under sub-section (2) of section 45ZD;
(qb) the functions of the Secretary under sub-section (2) of section 45ZG;
5
(qc) the procedure, manner of conducting of meetings and related matters of the Monetary Policy
Committee under sub-section (12) of section 45ZI;
(qd) the particulars and the frequency of publication of document under sub-section (2) of
section 45ZJ;
(qe) the form and contents of the Monetary Policy Report to be published under sub-section (2) 10
of section 45ZM;”.
PART II
AMENDMENT TO THE CENTRAL SALES TAX ACT, 1956
Amendment
of Act 74 of
1956.
221. In the Central Sales Tax Act, 1956, in section 3, after Explanation 2, the following Explanation
15
shall be inserted, namely:—
“Explanation 3.-– Where the gas sold or purchased and transported through a common carrier
pipeline or any other common transport or distribution system becomes co-mingled and fungible with
other gas in the pipeline or system and such gas is introduced into the pipeline or system in one State
and is taken out from the pipeline in another State, such sale or purchase of gas shall be deemed to be
20
a movement of goods from one State to another.”.
PART III
AMENDMENT TO THE OIL INDUSTRY (DEVELOPMENT) ACT, 1974
Amendment
of Schedule
to Act 47 of
1974.
222. In the Oil Industry (Development) Act, 1974, in the Schedule, against Sl.No.1 relating to crude
oil, for the entry in column 3, the entry “twenty per cent. ad valorem” shall be substituted.
PART IV
25
AMENDMENT TO THE SMUGGLERS AND FOREIGN EXCHANGE MANIPULATORS
(FORFEITURE OF PROPERTY) ACT, 1976
Amendment
of Act 13 of
1976.
223. In the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 with
effect from the 1st day of June, 2016,––
(a) section 2A shall be omitted;
30
(b) in section 3, in sub-section (1), in clause (a), the words “for Forfeited Property” shall be
omitted;
(c) in section 12,––
(i) in sub-section (1),––
(A) the words “to be called the Appellate Tribunal for Forfeited Property” shall be omitted;
35
(B) for the words “hearing appeals against the orders made under section 7, sub-section (1)
of section 9 or section 10”, the following shall be substituted, namely:––
“hearing appeals against the orders made––
(a) under section 7, sub-section (1) of section 9 or section 10;
(b) under section 68F, section 68-I, sub-section (1) of section 68K or section 68L of 40
61 of 1985.
the Narcotic Drugs and Psychotropic Substances Act, 1985;
(c) by the Adjudicating Authority or any other authority under the Prevention of Moneylaundering Act, 2002.”;
(ii) in sub-section (2), the words “or is qualified to be” shall be omitted;
(iii) in sub-section (6A), for the words “Bench of two members”, the words “Bench with one or 45
two members” shall be substituted;
15 of 2003.
69
(iv) after sub-section (6A), the following sub-sections shall be inserted, namely:––
5
“(6B) In the event of the occurrence of any vacancy in the office of the Chairman by reason
of his death, resignation or otherwise, the senior-most member, shall act as the Chairman until
the date on which a new Chairman, appointed in accordance with the provisions of this Act to
fill such vacancy, enters upon his office.
(6C) When the Chairman is unable to discharge his functions owing to absence, illness or
any other cause, the senior-most member shall discharge the functions of the Chairman until
the date on which the Chairman resumes his duties.”.
PART V
10
AMENDMENT TO THE NARCOTIC DRUGS AND PSYCHOTROPIC SUBSTANCES ACT, 1985
224. In the Narcotic Drugs and Psychotropic Substances Act, 1985 with effect from the 1st day of Amendment
of Act 61 of
June, 2016,––
61 of 1985.
1985.
(a) in section 68B, in clause (a), for the words “for Forfeited Property constituted under”, the
words “referred to in” shall be substituted;
15
(b) for section 68N, the following section shall be substituted, namely:––
“68N. The Appellate Tribunal constituted under sub-section (1) of section 12 of the Smugglers Appellate
and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 shall be the Appellate Tribunal.
Tribunal for hearing appeals against the orders made under section 68F, section 68-I, sub-section (1)
of section 68K or section 68L.”;
13 of 1976.
20
(c) in section 76, in sub-section (2), clause (db) shall be omitted.
PART VI
AMENDMENTS TO THE FOREIGN EXCHANGE MANAGEMENT ACT, 1999
225. The provisions of this Part shall come into force on such date as the Central Government may,
by notification in the Official Gazette, appoint.
25
30
43 of 1961.
35
Commencement
of this Part.
226. In the Foreign Exchange Management Act, 1999, after section 14, the following section shall Amendment
of Act 42 of
be inserted, namely:––
“14A. (1) Save as otherwise provided in this Act, the Adjudicating Authority may, by order in
writing, authorise an officer of Enforcement not below the rank of Assistant Director to recover any
arrears of penalty from any person who fails to make full payment of penalty imposed on him under
section 13 within the period of ninety days from the date on which the notice for payment of such
penalty is served on him.
1999.
Power to
recover
arrears of
penalty.
(2) The officer referred to in sub-section (1) shall exercise all the like powers which are conferred
on the income-tax authority in relation to recovery of tax under the Income-tax Act, 1961 and the
procedure laid down under the Second Schedule to the said Act shall mutatis mutandis apply in
relation to recovery of arrears of penalty under this Act.”.
PART VII
AMENDMENT TO THE CENTRAL ROAD FUND ACT, 2000.
227. In section 10 of the Central Road Fund Act, 2000, with effect from the 1st day of June, 2016,— Amendment of
(A) in sub-section (1), for clause (viii), the following clause shall be substituted, namely:––
40
“(viii) allocation of––
(a) thirty-three and one-half per cent. of the cess on high speed diesel and petrol for the
development of rural roads;
(b) forty-one and one-half per cent. of the cess on high speed diesel and petrol for the
development and maintenance of national highways;
45
50
(c) fourteen per cent. of the cess on high speed diesel and petrol for railways safety works,
including the construction of road either under or over the railways by means of a bridge and
erection of safety works at unmanned rail-road crossings, new lines, conversion of existing
standard lines into gauge lines and electrification of rail lines:
Provided that no repair, maintenance or renovation work shall be carried out from the
allocation of cess under this sub-clause;
Act 54 of
2000.
70
(d) ten per cent. of the cess on high speed diesel and petrol on development and maintenance
of State roads of inter-State and economic importance to be so approved by the Central
Government; and
(f) one per cent. of the cess on high speed diesel and petrol on development and maintenance
of road in border areas.”;
5
(B) sub-section (2) shall be omitted.
PART VIII
AMENDMENT TO THE FINANCE ACT, 2001
Amendment
of Act 14 of
2001.
228. In the Finance Act, 2001, the Seventh Schedule shall be amended,––
(i) in the manner specified in the Twelfth Schedule;
10
(ii) in the manner specified in the Thirteenth Schedule, with effect from the 1st day of January,
2017.
PART IX
AMENDMENT TO THE PREVENTION OF MONEY-LAUNDERING ACT, 2002
Amendment
of Act 15 of
2003.
229. In the Prevention of Money-laundering Act, 2002 with effect from the 1st day of June, 2016,–– 15
(a) in section 2, in sub-section (1), in clause (b), for the words “established under”, the words
“referred to in” shall be substituted;
(b) for section 25, the following section shall be substituted, namely:––
Appellate
Tribunal.
“25. The Appellate Tribunal constituted under sub-section (1) of section 12 of the Smugglers
and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 shall be the Appellate 20 13 of 1976.
Tribunal for hearing appeals against the orders of the Adjudicating Authority and the other authorities
under this Act.”;
(c) sections 27, 28, 30, 31, 32, 33 and 34 shall be omitted;
(d) in sections 36, 37, 38 and 40, for the word “Chairperson” wherever it occurs, the word “Chairman”
25
shall be substituted;
(e) in section 73, in sub-section (2), clauses (s) and (t) shall be omitted.
PART X
AMENDMENT TO THE FINANCE (NO. 2) ACT, 2004
Amendment
of Act 23 of
2004.
230. In the Finance (No.2) Act, 2004 with effect from the 1st day of June, 2016,––
(a) in section 98, in the Table, against serial number 4, in item (a), under column (3), for the entry 30
“0.017 per cent.”, the entry “0.05 per cent.” shall be substituted;
(b) for section 113A, the following section shall be substituted, namely:—
Chapter VII
not to apply in
certain cases.
‘113A. Notwithstanding anything contained in this Chapter, the provisions of this Chapter shall
not apply to taxable securities transactions entered into by,––
(a) any person for, or on behalf of, the New Pension System Trust referred to in clause (44) 35
of section 10 of the Income-tax Act, 1961; or
43 of 1961.
(b) any person on a recognised stock exchange located in an International Financial Services
Centre where the consideration for such transaction is paid or payable in foreign currency.
Explanation.––For the purposes of this section, “International Financial Services Centre” shall have
the same meaning as assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 40 28 of 2005.
2005.’.
PART XI
AMENDMENT TO THE FINANCE ACT, 2005
Amendment
of Act 18 of
2005.
231. In the Finance Act, 2005, the Seventh Schedule shall be amended in the manner specified in
the Fourteenth Schedule.
71
PART XII
AMENDMENT TO THE FINANCE ACT, 2010
232. In the Finance Act, 2010,—
5
(i) in Chapter VII or in any other law for the time being in force, for the words “Clean Energy Cess”,
wherever they occur, the words “Clean Environment Cess” shall be substituted;
Amendment of
Act 14 of 2010.
(ii) in the Tenth Schedule, for the entry in column (4) occurring against all the headings, the entry
“Rs.400 per tonne” shall be substituted.
PART XIII
AMENDMENT TO THE FOREIGN CONTRIBUTION (REGULATION) ACT, 2010
10
42 of 1999.
15
233. In the Foreign Contribution (Regulation) Act, 2010, in section 2, in sub-section (1), in clause (j),
in sub-clause (vi), the following proviso shall be inserted and shall be deemed to have been inserted
with effect from the 26th September, 2010, namely:—
Amendment
of section 2 of
Act 42 of
2010.
“Provided that where the nominal value of share capital is within the limits specified for foreign
investment under the Foreign Exchange Management Act, 1999, or the rules or regulations made
thereunder, then, notwithstanding the nominal value of share capital of a company being more than
one-half of such value at the time of making the contribution, such company shall not be a foreign
source;”.
PART XIV
AMENDMENT TO THE FINANCE ACT, 2013
20
25
234. In the Finance Act, 2013, after section 132, the following section shall be inserted, with effect
from the 1st day of June, 2016, namely:—
‘132A. Notwithstanding anything contained in this Chapter, the provisions of this Chapter shall
not apply to taxable commodities transactions entered into by any person on a recognised association
located in an International Financial Services Centre, where the consideration for such transaction
is paid or payable in foreign currency.
Amendment
of Act 17 of
2013.
Chapter VII
not to apply
in certain
cases.
Explanation.––For the purposes of this section, “International Financial Services Centre” shall
have the same meaning as assigned to it in clause (q) of section 2 of the Special Economic Zones,
Act, 2005.’.
28 of 2005.
PART XV
30
20 of 2015.
AMENDMENT TO THE FINANCE ACT, 2015
235. In the Finance Act, 2015,––
(a) in section 4, clause (ii) shall be omitted with effect from the 1st day of April, 2016;
Amendment
of Act 20 of
2015.
(b) with effect from the 1st day of June, 2016,––
35
(i) in section 122, in sub-section (2), for the words “Any credit balance”, the words
“Notwithstanding anything contrary contained in any other law for the time being in force, any
credit balance” shall be substituted;
(ii) in section 124, sub-section (5) shall be omitted;
(iii) in section 128, in sub-section (2), clause (c) shall be omitted.
PART XVI
40
REPEAL AND AMENDMENT OF CERTAIN ENACTMENTS
236. The enactments specified in the Fifteenth Schedule are hereby repealed or amended to the Repeal and
amendment of
extent mentioned in the fourth column thereof.
certain
enactments.
237. (1) The repeal by this Act of the enactments specified in the Fifteenth Schedule or amendments Savings.
therein shall not––
45
(a) affect any other enactment in which the repealed enactment has been applied, incorporated
or referred to;
72
(b) affect the validity, invalidity, effect or consequences of anything already done or suffered, or
any right, title, obligation or liability already acquired, accrued or incurred or any remedy or proceeding
in respect thereof, or any release or discharge of or from any debt, penalty, obligation, liability, claim
or demand, or any indemnity already granted, or the proof of any past act or thing;
(c) affect any principle or rule of law, or established jurisdiction, form or course of pleading, 5
practice or procedure, or existing usage, custom, privilege, restriction, exemption, office or
appointment, notwithstanding that the same respectively may have been in any manner affirmed or
recognised or derived by, in or from any enactment hereby repealed;
(d) revive or restore any jurisdiction, office, custom, liability, right, title, privilege, restriction,
exemption, usage, practice, procedure or other matter or thing not now existing or in force.
10
(2) The mention of particular matters in sub-section (1) shall not be held to prejudice or affect the
general application of section 6 of the General Clauses Act, 1897, with regard to the effect of repeals.
10 of 1897.
Collection
238. Notwithstanding the repeal or amendment of the enactments specified in the Fifteenth Schedule,
and payment the proceeds of duties levied under the said enactments immediately preceding the date on which the
of arrears of
15
Finance Bill, 2016 receives the assent of the President,—
duties.
(i) if collected by the collecting agencies but not paid into the Reserve Bank of India; or
(ii) if not collected by the collecting agencies,
shall be paid or as the case may be, collected and paid into the Reserve Bank of India for being
credited to the Consolidated Fund of India.
————————
Declaration under the Provisional Collection of Taxes Act, 1931
It is hereby declared that it is expedient in the public interest that the provisions of clauses 138(i),
142(i), 143(i), 159, 231 and 232 of this Bill shall have immediate effect under the Provisional Collection
of Taxes Act, 1931.
————————
20
16 of 1931.
THE FIRST SCHEDULE
(See section 2)
PART I
INCOME-TAX
Paragraph A
5
(I) In the case of every individual other than the individual referred to in items (II) and (III) of this Paragraph or Hindu undivided
family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in
sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which any other Paragraph of this Part
applies,—
10
15
Rates of income-tax
(1) where the total income does not exceed Rs. 2,50,000
Nil;
(2) where the total income exceeds Rs. 2,50,000 but does not
exceed Rs. 5,00,000
10 per cent. of the amount by which the total income
exceeds Rs. 2,50,000;
(3) where the total income exceeds Rs. 5,00,000 but does not
exceed Rs. 10,00,000
Rs. 25,000 plus 20 per cent. of the amount by which
the total income exceeds Rs. 5,00,000;
(4) where the total income exceeds Rs. 10,00,000
Rs. 1,25,000 plus 30 per cent. of the amount by which
the total income exceeds Rs. 10,00,000.
(II) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years
at any time during the previous year,—
20
25
Rates of income-tax
(1) where the total income does not exceed Rs. 3,00,000
Nil;
(2) where the total income exceeds Rs. 3,00,000 but does
not exceed Rs. 5,00,000
10 per cent. of the amount by which the total income
exceeds Rs. 3,00,000;
(3) where the total income exceeds Rs. 5,00,000 but does
not exceed Rs. 10,00,000
Rs. 20,000 plus 20 per cent. of the amount by which
the total income exceeds Rs. 5,00,000;
(4) where the total income exceeds Rs. 10,00,000
Rs. 1,20,000 plus 30 per cent. of the amount by which
the total income exceeds Rs. 10,00,000.
(III) In the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the
previous year,—
30
Rates of income-tax
(1) where the total income does not exceed Rs. 5,00,000
Nil;
(2) where the total income exceeds Rs. 5,00,000 but does not
exceed Rs. 10,00,000
20 per cent. of the amount by which the total income
exceeds Rs. 5,00,000;
(3) where the total income exceeds Rs. 10,00,000
Rs. 1,00,000 plus 30 per cent. of the amount by which
the total income exceeds Rs. 10,00,000.
35
Surcharge on income-tax
The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section
111A or section 112 of the Income-tax Act, shall, in the case of every individual or Hindu undivided family or association of persons
or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31)
40 of section 2 of the Income-tax Act, having a total income exceeding one crore rupees, be increased by a surcharge for the purpose
of the Union calculated at the rate of twelve per cent. of such income-tax:
Provided that in the case of persons mentioned above having total income exceeding one crore rupees, the total amount
payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income
of one crore rupees by more than the amount of income that exceeds one crore rupees.
73
74
Paragraph B
In the case of every co-operative society,—
Rates of income-tax
(1)
where the total income does not exceed Rs.10,000
10 per cent. of the total income;
(2)
where the total income exceeds Rs.10,000 but does not
exceed Rs. 20,000
Rs.1,000 plus 20 per cent. of the amount by which the
total income exceeds Rs.10,000;
(3)
where the total income exceeds Rs. 20,000
Rs. 3,000 plus 30 per cent. of the amount by which the
total income exceeds Rs. 20,000.
5
Surcharge on income-tax
The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 10
111A or section 112 of the Income-tax Act, shall, in the case of every co-operative society, having a total income exceeding one crore
rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:
Provided that in the case of co-operative society mentioned above having total income exceeding one crore rupees, the total
amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total
income of one crore rupees by more than the amount of income that exceeds one crore rupees.
15
Paragraph C
In the case of every firm,—
Rate of income-tax
On the whole of the total income
30 per cent.
20
Surcharge on income-tax
The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section
111A or section 112 of the Income-tax Act, shall, in the case of every firm, having a total income exceeding one crore rupees, be
increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:
Provided that in the case of firm mentioned above having total income exceeding one crore rupees, the total amount payable as
income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore 25
rupees by more than the amount of income that exceeds one crore rupees.
Paragraph D
In the case of every local authority,—
Rate of income-tax
On the whole of the total income
30 per cent.
30
Surcharge on income-tax
The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section
111A or section 112 of the Income-tax Act, shall, in the case of every local authority, having a total income exceeding one crore
rupees, be increased by a surcharge for the purpose of the Union calculated at the rate of twelve per cent. of such income-tax:
Provided that in the case of local authority mentioned above having total income exceeding one crore rupees, the total amount 35
payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income
of one crore rupees by more than the amount of income that exceeds one crore rupees.
Paragraph E
In the case of a company,—
Rates of income-tax
I. In the case of a domestic company
40
30 per cent. of the total income.
75
II. In the case of a company other than a domestic company,—
(i) on so much of the total income as consists of,—
5
(a) royalties received from Government or an Indian concern in pursuance of
an agreement made by it with the Government or the Indian concern after the
31st day of March, 1961 but before the 1st day of April, 1976; or
(b) fees for rendering technical services received from Government or an
Indian concern in pursuance of an agreement made by it with the Government or
the Indian concern after the 29th day of February, 1964 but before the 1st day of
April, 1976,
10 and where such agreement has, in either case, been approved by the Central
Government
(ii) on the balance, if any, of the total income
50 per cent.;
40 per cent.
Surcharge on income-tax
The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of
15 section 111A or section 112 of the Income-tax Act, shall, be increased by a surcharge for the purposes of the Union calculated,—
(i) in the case of every domestic company,––
(a) having a total income exceeding one crore rupees, but not exceeding ten crore rupees, at the rate of seven per cent.
of such income-tax; and
(b) having a total income exceeding ten crore rupees, at the rate of twelve per cent. of such income-tax;
20
(ii) in the case of every company other than a domestic company,––
(a) having a total income exceeding one crore rupees but not exceeding ten crore rupees, at the rate of two per cent. of
such income-tax; and
(b) having a total income exceeding ten crore rupees, at the rate of five per cent. of such income-tax:
Provided that in the case of every company having a total income exceeding one crore rupees but not exceeding ten crore
25 rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as
income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees:
Provided further that in the case of every company having a total income exceeding ten crore rupees, the total amount payable
as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total
income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.
PART II
30
RATES FOR DEDUCTION OF TAX AT SOURCE IN CERTAIN CASES
In every case in which under the provisions of sections 193, 194, 194A, 194B, 194BB, 194D , 194LBA, 194LBB, 194LBC and
195 of the Income-tax Act, tax is to be deducted at the rates in force, deduction shall be made from the income subject to the
deduction at the following rates:––
Rate of income-tax
35
1. In the case of a person other than a company—
(a) where the person is resident in India—
(i) on income by way of interest other than “Interest on securities”
40
45
(ii) on income by way of winnings from lotteries, crossword puzzles, card games
and other games of any sort
10 per cent.;
30 per cent.;
(iii) on income by way of winnings from horse races
30 per cent.;
(iv) on income by way of insurance commission
5 per cent.;
(v) on income by way of interest payable on—
10 per cent.;
(A) any debentures or securities for money issued by or on behalf of any
local authority or a corporation established by a Central, State or Provincial
Act;
(B) any debentures issued by a company where such debentures are listed
on a recognised stock exchange in India in accordance with the Securities
Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder;
76
Rate of income-tax
(C) any security of the Central or State Government;
(vi) on any other income
10 per cent.;
(b) where the person is not resident in India—
(i) in the case of a non-resident Indian—
(A) on any investment income
5
20 per cent.;
(B) on income by way of long-term capital gains referred to in section 115E or
sub-clause (iii) of clause (c) of sub-section (1) of section 112
10 per cent.;
(C) on income by way of short-term capital gains referred to in section 111A
15 per cent.;
(D) on other income by way of long-term capital gains [not being long-term capital
gains referred to in clauses (33), (36) and (38) of section 10]
20 per cent.;
(E) on income by way of interest payable by Government or an Indian concern
on moneys borrowed or debt incurred by Government or the Indian concern in foreign
currency (not being income by way of interest referred to in section 194LB or section
194LC)
20 per cent.;
(F) on income by way of royalty payable by Government or an Indian concern in
pursuance of an agreement made by it with the Government or the Indian concern
where such royalty is in consideration for the transfer of all or any rights (including
the granting of a licence) in respect of copyright in any book on a subject referred to
in the first proviso to sub-section (1A) of section 115A of the Income-tax Act, to the
Indian concern, or in respect of any computer software referred to in the second
proviso to sub-section (1A) of section 115A of the Income-tax Act, to a person resident
in India
10 per cent.;
(G) on income by way of royalty [not being royalty of the nature referred to in subitem (b)(i)(F)] payable by Government or an Indian concern in pursuance of an
agreement made by it with the Government or the Indian concern and where such
agreement is with an Indian concern, the agreement is approved by the Central
Government or where it relates to a matter included in the industrial policy, for the
time being in force, of the Government of India, the agreement is in accordance with
that policy
10 per cent.;
(H) on income by way of fees for technical services payable by Government or
an Indian concern in pursuance of an agreement made by it with the Government or
the Indian concern and where such agreement is with an Indian concern, the
agreement is approved by the Central Government or where it relates to a matter
included in the industrial policy, for the time being in force, of the Government of
India, the agreement is in accordance with that policy
10 per cent.;
(I) on income by way of winnings from lotteries, crossword puzzles, card games
and other games of any sort
30 per cent.;
10
15
20
25
30
35
(J) on income by way of winnings from horse races
30 per cent.;
(K) on the whole of the other income
30 per cent.;
40
(ii) in the case of any other person—
(A) on income by way of interest payable by Government or an Indian concern
on moneys borrowed or debt incurred by Government or the Indian concern in foreign
currency (not being income by way of interest referred to in section 194LB or section
194LC)
20 per cent.;
(B) on income by way of royalty payable by Government or an Indian concern in
pursuance of an agreement made by it with the Government or the Indian concern
where such royalty is in consideration for the transfer of all or any rights (including
the granting of a licence) in respect of copyright in any book on a subject referred to
in the first proviso to sub-section (1A) of section 115A of the Income-tax Act, to the
Indian concern, or in respect of any computer software referred to in the second
proviso to sub-section (1A) of section 115A of the Income-tax Act, to a person resident
in India
10 per cent.;
45
50
77
Rate of income-tax
5
10
15
(C) on income by way of royalty [not being royalty of the nature referred to
in sub-item (b)(ii)(B)] payable by Government or an Indian concern in pursuance
of an agreement made by it with the Government or the Indian concern and
where such agreement is with an Indian concern, the agreement is approved
by the Central Government or where it relates to a matter included in the
industrial policy, for the time being in force, of the Government of India, the
agreement is in accordance with that policy
10 per cent.;
(D) on income by way of fees for technical services payable by Government
or an Indian concern in pursuance of an agreement made by it with the
Government or the Indian concern and where such agreement is with an Indian
concern, the agreement is approved by the Central Government or where it
relates to a matter included in the industrial policy, for the time being in force,
of the Government of India, the agreement is in accordance with that policy
10 per cent.;
(E) on income by way of winnings from lotteries, crossword puzzles, card
games and other games of any sort
30 per cent.;
(F) on income by way of winnings from horse races
20
(G) on income by way of short-term capital gains referred to in section
111A
15 per cent.;
(H) on income by way of long-term capital gains referred to in sub-clause
(iii) of clause (c) of sub-section (1) of section 112
10 per cent.;
(I) on income by way of other long-term capital gains [not being longterm capital gains referred to in clauses (33), (36) and (38) of section 10]
20 per cent.;
(J) on the whole of the other income
25
30 per cent.;
30 per cent.
2. In the case of a company—
(a) where the company is a domestic company—
(i) on income by way of interest other than “Interest on securities”
(ii) on income by way of winnings from lotteries, crossword puzzles, card
games and other games of any sort
30
10 per cent.;
30 per cent.;
(iii) on income by way of winnings from horse races
30 per cent.;
(iv) on any other income
10 per cent.;
(b) where the company is not a domestic company—
(i) on income by way of winnings from lotteries, crossword puzzles, card
games and other games of any sort
35
40
45
50
(ii) on income by way of winnings from horse races
30 per cent.;
30 per cent.;
(iii) on income by way of interest payable by Government or an Indian concern
on moneys borrowed or debt incurred by Government or the Indian concern in
foreign currency (not being income by way of interest referred to in section 194LB
or section 194LC)
20 per cent.;
(iv) on income by way of royalty payable by Government or an Indian concern
in pursuance of an agreement made by it with the Government or the Indian
concern after the 31st day of March, 1976 where such royalty is in consideration
for the transfer of all or any rights (including the granting of a licence) in respect
of copyright in any book on a subject referred to in the first proviso to sub-section
(1A) of section 115A of the Income-tax Act, to the Indian concern, or in respect of
any computer software referred to in the second proviso to sub-section (1A) of
section 115A of the Income-tax Act, to a person resident in India
10 per cent.;
(v) on income by way of royalty [not being royalty of the nature referred to in
sub-item (b)(iv)] payable by Government or an Indian concern in pursuance of
an agreement made by it with the Government or the Indian concern and where
such agreement is with an Indian concern, the agreement is approved by the
Central Government or where it relates to a matter included in the industrial
policy, for the time being in force, of the Government of India, the agreement is in
accordance with that policy—
78
Rate of income-tax
(A) where the agreement is made after the 31st day of March, 1961 but before
the 1st day of April, 1976
(B) where the agreement is made after the 31st day of March, 1976
50 per cent.;
10 per cent.;
(vi) on income by way of fees for technical services payable by Government or an
Indian concern in pursuance of an agreement made by it with the Government or the
Indian concern and where such agreement is with an Indian concern, the agreement is
approved by the Central Government or where it relates to a matter included in the
industrial policy, for the time being in force, of the Government of India, the agreement
is in accordance with that policy—
(A) where the agreement is made after the 29th day of February, 1964 but
before the 1st day of April, 1976
(B) where the agreement is made after the 31st day of March, 1976
5
10
50 per cent.;
10 per cent.;
(vii) on income by way of short-term capital gains referred to in section 111A
15 per cent.;
(viii) on income by way of long-term capital gains referred to in sub-clause (iii) of
clause (c) of sub-section (1) of section 112
10 per cent.;
(ix) on income by way of other long-term capital gains [not being long-term capital
gains referred to in clauses (33), (36) and (38) of section 10]
20 per cent.;
15
40 per cent.
(x) on any other income
Explanation.— For the purpose of item 1(b)(i) of this Part, “investment income” and “non-resident Indian” shall have the meanings
assigned to them in Chapter XII-A of the Income-tax Act.
20
Surcharge on income-tax
The amount of income-tax deducted in accordance with the provisions of––
(i) item 1 of this Part, shall be increased by a surcharge, for purposes of the Union,––
(a) in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether
incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income- 25
tax Act, being a non-resident, calculated at the rate of fifteen per cent. of such tax; and
(b) in the case of every co-operative society or firm, being a non-resident, calculated at the rate of twelve per cent.,
where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore
rupees;
30
(ii) Item 2 of this Part shall be increased by a surcharge, for purposes of the Union, in the case of every company other than
a domestic company, calculated,––
(a) at the rate of two per cent. of such income-tax where the income or the aggregate of such incomes paid or likely to be
paid and subject to the deduction exceeds one crore rupees but does not exceed ten crore rupees; and
(b) at the rate of five per cent. of such income-tax where the income or the aggregate of such incomes paid or likely to be
paid and subject to the deduction exceeds ten crore rupees.
35
PART III
RATES FOR CHARGING INCOME-TAX IN CERTAIN CASES, DEDUCTING INCOME-TAX FROM
INCOME CHARGEABLE UNDER THE HEAD “SALARIES” AND COMPUTING “ADVANCE TAX”
In cases in which income-tax has to be charged under sub-section (4) of section 172 of the Income-tax Act or sub-section (2) of
section 174 or section 174A or section 175 or sub-section (2) of section 176 of the said Act or deducted from, or paid on, from 40
income chargeable under the head “Salaries” under section 192 of the said Act or in which the “advance tax” payable under
Chapter XVII-C of the said Act has to be computed at the rate or rates in force, such income-tax or, as the case may be, “advance
tax” [not being “advance tax” in respect of any income chargeable to tax under Chapter XII or Chapter XII-A or income chargeable
to tax under section 115JB or section 115JC or Chapter XII-FA or Chapter XII-FB or sub-section (1A) of section 161 or section 164
or section 164A or section 167B of the Income-tax Act at the rates as specified in that Chapter or section or surcharge, wherever 45
applicable, on such “advance tax” in respect of any income chargeable to tax under section 115A or section 115AB or section
115AC or section 115ACA or section 115AD or section 115B or section 115BA or section 115BB or section 115BBA or section
115BBC or section 115BBD or section 115BBDA or section 115BBE or section 115BBF or section 115E or section 115JB or
section 115JC] shall be charged, deducted or computed at the following rate or rates:—
Paragraph A
(I) In the case of every individual other than the individual referred to in items (II) and (III) of this Paragraph or Hindu undivided 50
family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in
sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which any other Paragraph of this Part
applies,—
79
Rates of income-tax
5
(1)
where the total income does not exceed Rs. 2,50,000
Nil;
(2)
where the total income exceeds Rs. 2,50,000 but does not
exceed Rs. 5,00,000
10 per cent. of the amount by which the total income
exceeds Rs. 2,50,000;
(3)
where the total income exceeds Rs. 5,00,000 but does not
exceed Rs. 10,00,000
Rs. 25,000 plus 20 per cent. of the amount by which the
total income exceeds Rs. 5,00,000;
(4)
where the total income exceeds Rs. 10,00,000
Rs. 1,25,000 plus 30 per cent. of the amount by which
the total income exceeds Rs. 10,00,000.
(II) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years
10 at any time during the previous year,—
Rates of income-tax
15
(1)
where the total income does not exceed Rs. 3,00,000
Nil;
(2)
where the total income exceeds Rs. 3,00,000 but does not
exceed Rs. 5,00,000
10 per cent. of the amount by which the total income
exceeds Rs. 3,00,000;
(3)
where the total income exceeds Rs. 5,00,000 but does not
exceed Rs. 10,00,000
Rs. 20,000 plus 20 per cent. of the amount by which the
total income exceeds Rs. 5,00,000;
(4)
where the total income exceeds Rs. 10,00,000
Rs. 1,20,000 plus 30 per cent. of the amount by which
the total income exceeds Rs. 10,00,000.
(III) In the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the
20 previous year,—
Rates of income-tax
25
(1)
where the total income does not exceed Rs. 5,00,000
Nil;
(2)
where the total income exceeds Rs. 5,00,000 but does not
exceed Rs. 10,00,000
20 per cent. of the amount by which the total income
exceeds Rs. 5,00,000;
(3)
where the total income exceeds Rs. 10,00,000
Rs. 1,00,000 plus 30 per cent. of the amount by which
the total income exceeds Rs. 10,00,000.
Surcharge on income-tax
The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section
111A or section 112 of the Income-tax Act, shall, in the case of every individual or Hindu undivided family or association of persons
30 or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of
section 2 of the Income-tax Act, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes
of the Union calculated at the rate of fifteen per cent. of such income-tax:
Provided that in the case of persons mentioned above having total income exceeding one crore rupees, the total amount
payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income
35 of one crore rupees by more than the amount of income that exceeds one crore rupees.
Paragraph B
In the case of every co-operative society,—
Rates of income-tax
40
(1)
where the total income does not exceed Rs. 10,000
10 per cent. of the total income;
(2)
where the total income exceeds Rs. 10,000 but does not
exceed Rs. 20,000
Rs. 1,000 plus 20 per cent. of the amount by which the
total income exceeds Rs. 10,000;
(3)
where the total income exceeds Rs. 20,000
Rs. 3,000 plus 30 per cent. of the amount by which the
total income exceeds Rs. 20,000.
Surcharge on income-tax
45
The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section
111A or section 112 of the Income-tax Act, shall, in the case of every co-operative society, having a total income exceeding one
crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such incometax:
80
Provided that in the case of every co-operative society mentioned above having total income exceeding one crore rupees, the
total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a
total income of one crore rupees by more than the amount of income that exceeds one crore rupees.
Paragraph C
In the case of every firm,—
5
Rate of income-tax
On the whole of the total income
30 per cent.
Surcharge on income-tax
The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section
111A or section 112 of the Income-tax Act, shall, in the case of every firm, having a total income exceeding one crore rupees, be 10
increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:
Provided that in the case of every firm mentioned above having total income exceeding one crore rupees, the total amount
payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income
of one crore rupees by more than the amount of income that exceeds one crore rupees.
15
Paragraph D
In the case of every local authority,—
Rate of income-tax
On the whole of the total income
30 per cent.
Surcharge on income-tax
The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 20
111A or section 112 of the Income-tax Act, shall, in the case of every local authority, having a total income exceeding one crore
rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent.of such income-tax:
Provided that in the case of every local authority mentioned above having total income exceeding one crore rupees, the
total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a
total income of one crore rupees by more than the amount of income that exceeds one crore rupees.
25
Paragraph E
In the case of a company,—
Rates of income-tax
I. In the case of a domestic company,—
(i) where its total turnover or the gross receipt in the previous year
2014-15 does not exceed five crore rupees;
(ii) other than that referred to in item (i)
30
29 per cent. of the total income;
30 per cent. of the total income;
II. In the case of a company other than a domestic company—
(i) on so much of the total income as consists of,—
35
(a) royalties received from Government or an Indian concern in
pursuance of an agreement made by it with the Government or the
Indian concern after the 31st day of March, 1961 but before the 1st
day of April, 1976; or
40
(b) fees for rendering technical services received from Government
or an Indian concern in pursuance of an agreement made by it with
the Government or the Indian concern after the 29th day of February,
1964 but before the 1st day of April, 1976,
and where such agreement has, in either case, been approved by the
Central Government
(ii) on the balance, if any, of the total income
50 per cent.;
40 per cent.
45
81
Surcharge on income-tax
The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section
111A or section 112 of the Income-tax Act, shall, be increased by a surcharge for the purposes of the Union calculated,––
(i) in the case of every domestic company,––
5
(a) having a total income exceeding one crore rupees but not exceeding ten crore rupees, at the rate of seven per cent. of
such income-tax; and
(b) having a total income exceeding ten crore rupees, at the rate of twelve per cent. of such income-tax;
(ii) in the case of every company other than a domestic company,––
10
(a) having a total income exceeding one crore rupees but not exceeding ten crore rupees, at the rate of two per cent. of
such income-tax; and
(b) having a total income exceeding ten crore rupees, at the rate of five per cent. of such income-tax:
Provided that in the case of every company having a total income exceeding one crore rupees but not exceeding ten crore
rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as
income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees:
15
Provided further that in the case of every company having a total income exceeding ten crore rupees, the total amount payable
as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total
income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.
PART IV
[See section 2(13)(c)]
20
RULES FOR COMPUTATION OF NET AGRICULTURAL INCOME
Rule 1.—Agricultural income of the nature referred to in sub-clause (a) of clause (1A) of section 2 of the Income-tax Act shall be
computed as if it were income chargeable to income-tax under that Act under the head “Income from other sources” and the
provisions of sections 57 to 59 of that Act shall, so far as may be, apply accordingly:
Provided that sub-section (2) of section 58 shall apply subject to the modification that the reference to section 40A therein shall
25 be construed as not including a reference to sub-sections (3) and (4) of section 40A.
Rule 2.—Agricultural income of the nature referred to in sub-clause (b) or sub-clause (c) of clause (1A) of section 2 of the
Income-tax Act [other than income derived from any building required as a dwelling-house by the receiver of the rent or revenue
of the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c)] shall be computed as if it were income
chargeable to income-tax under that Act under the head “Profits and gains of business or profession” and the provisions of
30 sections 30, 31, 32, 36, 37, 38, 40, 40A [other than sub-sections (3) and (4) thereof], 41, 43, 43A, 43B and 43C of the Income-tax
Act shall, so far as may be, apply accordingly.
Rule 3.—Agricultural income of the nature referred to in sub-clause (c) of clause (1A) of section 2 of the Income-tax Act, being
income derived from any building required as a dwelling-house by the receiver of the rent or revenue or the cultivator or the
receiver of rent-in-kind referred to in the said sub-clause (c) shall be computed as if it were income chargeable to income-tax under
35 that Act under the head “Income from house property” and the provisions of sections 23 to 27 of that Act shall, so far as may be,
apply accordingly.
Rule 4.—Notwithstanding anything contained in any other provisions of these rules, in a case—
40
(a) where the assessee derives income from sale of tea grown and manufactured by him in India, such income shall be
computed in accordance with rule 8 of the Income-tax Rules, 1962, and sixty per cent. of such income shall be regarded as the
agricultural income of the assessee;
45
(b) where the assessee derives income from sale of centrifuged latex or cenex or latex based crepes (such as pale latex
crepe) or brown crepes (such as estate brown crepe, re-milled crepe, smoked blanket crepe or flat bark crepe) or technically
specified block rubbers manufactured or processed by him from rubber plants grown by him in India, such income shall be
computed in accordance with rule 7A of the Income-tax Rules, 1962, and sixty-five per cent. of such income shall be regarded
as the agricultural income of the assessee;
(c) where the assessee derives income from sale of coffee grown and manufactured by him in India, such income shall be
computed in accordance with rule 7B of the Income-tax Rules, 1962, and sixty per cent. or seventy-five per cent., as the case
may be, of such income shall be regarded as the agricultural income of the assessee.
Rule 5.—Where the assessee is a member of an association of persons or a body of individuals (other than a Hindu undivided
50 family, a company or a firm) which in the previous year has either no income chargeable to tax under the Income-tax Act or has
total income not exceeding the maximum amount not chargeable to tax in the case of an association of persons or a body of
individuals (other than a Hindu undivided family, a company or a firm) but has any agricultural income then, the agricultural income
or loss of the association or body shall be computed in accordance with these rules and the share of the assessee in the agricultural
income or loss so computed shall be regarded as the agricultural income or loss of the assessee.
82
Rule 6.—Where the result of the computation for the previous year in respect of any source of agricultural income is a loss, such
loss shall be set off against the income of the assessee, if any, for that previous year from any other source of agricultural income:
Provided that where the assessee is a member of an association of persons or a body of individuals and the share of the
assessee in the agricultural income of the association or body, as the case may be, is a loss, such loss shall not be set off against
any income of the assessee from any other source of agricultural income.
5
Rule 7.—Any sum payable by the assessee on account of any tax levied by the State Government on the agricultural income
shall be deducted in computing the agricultural income.
Rule 8.—(1) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of April,
2016, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more
of the previous years relevant to the assessment years commencing on the 1st day of April, 2008 or the 1st day of April, 2009 or
the 1st day of April, 2010 or the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April,
2014 or the 1st day of April, 2015, is a loss, then, for the purposes of sub-section (2) of section 2 of this Act,—
(i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2008, to
the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment
year commencing on the 1st day of April, 2009 or the 1st day of April, 2010 or the 1st day of April, 2011 or the 1st day of April,
2012 or the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April, 2015,
(ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2009, to
the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment
year commencing on the 1st day of April, 2010 or the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April,
2013 or the 1st day of April, 2014 or the 1st day of April, 2015,
10
15
20
(iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2010, to
the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment
year commencing on the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April,
2014 or the 1st day of April, 2015,
(iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2011, to
the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment
year commencing on the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April,
2015,
(v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2012, to
the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment
year commencing on the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April, 2015,
25
30
(vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2013, to
the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment
year commencing on the 1st day of April, 2014 or the 1st day of April, 2015,
(vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2014, 35
to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment
year commencing on the 1st day of April, 2015,
(viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2015,
shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing
on the 1st day of April, 2016.
40
(2) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of April, 2017, or,
if by virtue of any provision of the Income-tax Act, income-tax is to be charged in respect of the income of a period other than the
previous year, in such other period, any agricultural income and the net result of the computation of the agricultural income of the
assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of April, 2009 or
the 1st day of April, 2010 or the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April,
2014 or the 1st day of April, 2015 or the 1st day of April, 2016, is a loss, then, for the purposes of sub-section (10) of section 2 of
this Act,—
45
(i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2009, to
the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment
year commencing on the 1st day of April, 2010 or the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April, 50
2013 or the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016,
(ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2010, to
the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment
year commencing on the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April,
55
2014 or the 1st day of April, 2015 or the 1st day of April, 2016,
83
(iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2011, to
the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment
year commencing on the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April,
2015 or the 1st day of April, 2016,
5
10
(iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2012, to
the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment
year commencing on the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April,
2016,
(v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2013, to
the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment
year commencing on the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016,
(vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2014, to
the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment
year commencing on the 1st day of April, 2015 or the 1st day of April, 2016,
15
(vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2015,
to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment
year commencing on the 1st day of April, 2016,
(viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2016,
shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing
20 on the 1st day of April, 2017.
(3) Where any person deriving any agricultural income from any source has been succeeded in such capacity by another
person, otherwise than by inheritance, nothing in sub-rule (1) or sub-rule (2) shall entitle any person, other than the person incurring the loss, to have it set off under sub-rule (1) or, as the case may be, sub-rule (2).
(4) Notwithstanding anything contained in this rule, no loss which has not been determined by the Assessing Officer under the
25 provisions of these rules or the rules contained in the First Schedule to the Finance Act, 2008 (18 of 2008) or of the First Schedule
to the Finance (No. 2) Act, 2009 (33 of 2009) or of the First Schedule to the Finance Act, 2010 (14 of 2010) or of the First Schedule
to the Finance Act, 2011 (8 of 2011) or of the First Schedule to the Finance Act, 2012 (23 of 2012) or of the First Schedule to the
Finance Act, 2013 (17 of 2013) or of the First Schedule to the Finance (No. 2) Act, 2014 (25 of 2014) or of the First Schedule to
the Finance Act, 2015 (20 of 2015) shall be set off under sub-rule (1) or, as the case may be, sub-rule (2).
30
Rule 9.—Where the net result of the computation made in accordance with these rules is a loss, the loss so computed shall be
ignored and the net agricultural income shall be deemed to be nil.
Rule 10.—The provisions of the Income-tax Act relating to procedure for assessment (including the provisions of section 288A
relating to rounding off of income) shall, with the necessary modifications, apply in relation to the computation of the net agricultural
income of the assessee as they apply in relation to the assessment of the total income.
35
Rule 11.—For the purposes of computing the net agricultural income of the assessee, the Assessing Officer shall have the
same powers as he has under the Income-tax Act for the purposes of assessment of the total income.
THE SECOND SCHEDULE
(See section 136)
Sl.
No.
(1)
Notification number and date
(2)
Amendment
(3)
Date of effect of
amendment
(4)
1.
G.S.R. 367 (E) , dated the
27th April, 2000 [51/2000Customs, dated the 27th
April, 2000]
In the said notification, in the opening paragraph, for the
words, figures and letter “under sections 3, 8 and 9A”, the
words, figures and letters “under sections 3, 8B and 9A”
shall be substituted.
27th April, 2000.
2.
G.S.R. 292(E), dated the
19th April, 2002 [43/2002Customs, dated the 19th
April, 2002]
In the said notification, in the opening paragraph, for the
words, figures and letter “under sections 3, 8 and 9A”, the
words, figures and letters “under sections 3, 8B and 9A”
shall be substituted.
19th April, 2002.
3.
G.S.R. 281 (E), dated the 1st
April, 2003 [57/2003Customs, dated the 1st April,
2003]
In the said notification, in the Table, in column (3), against
S. No.4, for the words, figures and letter “under sections 3,
8 and 9A”, the words, figures and letters “under sections 3,
8B and 9A” shall be substituted.
1st April, 2003.
4.
G.S.R. 604 (E), dated the
10th September, 2004
[91/2004-Customs, dated the
10th September, 2004]
In the said notification, in paragraph 2, for the words, figures
and letter “under sections 3, 8 and 9A”, the words, figures
and letters “under sections 3, 8B and 9A” shall be
substituted.
10th September, 2004.
G.S.R. 606(E), dated the
10th
September,
2004
[93/2004-Customs, dated the
10th September, 2004]
In the said notification, in the opening paragraph, for the
words, figures and letter “under sections 3, 8 and 9A”, the
words, figures and letters “under sections 3, 8B and 9A”
shall be substituted.
10th September, 2004.
G.S.R. 260 (E), dated the 1st
May,
2006
[40/2006Customs, dated the 1st May,
2006]
In the said notification, in the opening paragraph, for the
words, figures and letter “under sections 3, 8 and 9A”, the
words, figures and letters “under sections 3, 8B and 9A”
shall be substituted.
1st May, 2006.
5.
6.
84
5
10
15
20
25
THE THIRD SCHEDULE
[See section 138(i)]
In the First Schedule to the Customs Tariff Act,––
(1) in Chapter 27, in the Supplementary Note,––
5
(a) in clause (e), for the figures “1460:2000”, the figures “1460:2005” shall be substituted;
(b) in clause (f), for the figures “1460”, the figures “15770:2008” shall be substituted;
(2) in Chapter 40,––
(a) for the entry in column (4) occurring against tariff item 4016 95 90, the entry “20%” shall be substituted;
(b) for the entry in column (4) occurring against tariff item 4016 99 90, the entry “20%” shall be substituted;
10
(3) in Chapter 58, in heading 5801,–
(a) in sub-heading 5801 37, the entry in column (2) “--- Warp pile fabrics, ‘epingle’ (uncut):” shall be omitted;
(b) for tariff items 5801 37 11 and 5801 37 19 and the entries relating thereto, the following shall be substituted,
namely:–
(1)
15
“5801 37 10
(2)
(3)
--- Warp pile fabrics, uncut
m²
(4)
(5)
10% or Rs.140 per sq. metre
whichever is higher
-”;
(4) in Chapter 71,—
(a) in heading 7104, for the tariff item 7104 90 00 and the entries relating thereto, the following shall be substituted,
namely:—
20
(1)
“7104 90
7104 90 10
7104 90 90
25
(2)
(3)
(4)
(5)
c/k
10%
-
kg.
10%
-”;
- Other:
--- Laboratory-created or laboratory grown or
manmade or cultured or synthetic diamonds
--- Other
(b) for the entry in column (4) occurring against all the tariff items of heading 7117, the entry “15%” shall be substituted;
(5) in Chapter 76, for the entry in column (4) occurring against all tariff items of headings 7601, 7603, 7604, 7605, 7606 and
7607, the entry “7.5%” shall be substituted;
(6) in Chapter 79, for the entry in column (4) occurring against all tariff items of sub-heading 7901 20, the entry “7.5%” shall
be substituted;
30
(7) in Chapter 84,––
(i) for the entry in column (4) occurring against all the tariff items of heading 8402, the entry “10%” shall be substituted;
(ii) for the entry in column (4) occurring against all tariff items of heading 8404, the entry “10%” shall be substituted;
(iii) for the entry in column (4) occurring against all tariff items (except tariff item 8406 10 00) of heading 8406, the entry
“10%” shall be substituted;
35
(iv) for the entry in column (4) occurring against all tariff items of heading 8410, the entry “10%” shall be substituted;
(v) for the entry in column (4) occurring against all tariff items (except tariff items 8411 11 00, 8411 12 00, 8411 21 00,
8411 22 00 and 8411 91 00) of heading 8411, the entry “10%” shall be substituted;
(vi) for the entry in column (4) occurring against tariff items 8412 80 19, 8412 80 20, 8412 80 30 and 8412 80 90 of
heading 8412, the entry “10%” shall be substituted;
40
(vii) for the entry in column (4) occurring against tariff item 8419 19 20, the entry “10%” shall be substituted;
(8) In Chapter 85,––
(i) for the entry in column (4) occurring against all tariff items of heading 8501, the entry “10%” shall be substituted;
85
86
(ii) for the entry in column (4) occurring against all tariff items (except tariff items 8502 11 00, 8502 20 10 and 8502 40 00)
of heading 8502, the entry “10%” shall be substituted;
(iii) for the entry in column (4) occurring against all tariff items (except tariff item 8503 00 90) of heading 8503, the entry
“10%” shall be substituted;
(iv) for the entry in column (4) occurring against all tariff items (except tariff items 8504 31 00, 8504 32 00, 8504 40 10,
8504 40 30, 8504 50 10 and 8504 50 90) of heading 8504, the entry “10%” shall be substituted;
5
(v) in heading 8525, the tariff item 8525 50 50 and the entries relating thereto shall be omitted;
(vi) for the entry in column (4) occurring against all tariff items (except tariff items under sub-headings 8535 40 and
8535 90) of heading 8535, the entry “10%” shall be substituted;
(vii) for the entry in column (4) occurring against all tariff items (except tariff items 8536 10 10, 8536 41 00, 8536 61 10, 10
8536 61 90, 8536 69 10, 8536 69 90 and 8536 70 00) of heading 8536, the entry “10%” shall be substituted;
(viii) for the entry in column (4) occurring against all tariff items of heading 8537, the entry “10%” shall be substituted;
(ix) for the entry in column (4) occurring against all tariff items (except tariff items 8544 42 91, 8544 42 92, 8544 42 93,
8544 42 99, 8544 70 10 and 8544 70 90) of heading 8544, the entry “10%” shall be substituted;
(x) for the entry in column (4) occurring against all tariff items of heading 8546, the entry “10%” shall be substituted; and 15
(xi) for the entry in column (4) occurring against all tariff items of heading 8547, the entry “10%” shall be substituted;
(9) in Chapter 90, for the entry in column (4) occurring against tariff items 9028 90 10, 9030 31 00, 9030 90 10, 9032 89 10
and 9032 89 90, the entry “10%” shall be substituted;
(10) in Chapter 95,—
(a) for the entry in column (4) occurring against tariff item 9503 00 90, the entry “20%” shall be substituted;
(b) for the entry in column (4) occurring against tariff item 9505 10 00, the entry “20%” shall be substituted;
(c) for the entry in column (4) occurring against tariff item 9505 90 90, the entry “20%” shall be substituted;
20
THE FOURTH SCHEDULE
[See section 138 (ii)]
5
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
Rate of Duty
Standard Preferential
(4)
(5)
In the First Schedule to the Customs Tariff Act, 1975,—
(1) in Chapter 3,—
(i) in Note 1, in clause (c),
shall be substituted;
10
(ii) in heading 0301, for tariff items 0301 93 00 and the entries relating thereto, the following shall be substituted,
namely:—
“0301 93 00
15
for the words “livers and roes”, the words “livers, roes and milt”
--
Carp (Cyprinus spp., Carassius spp., Ctenopharyngodon
idellus,Hypophthalmichthys spp.,
Cirrhinus spp.,
Mylopharyngodon piceus, Catla catla, Labeo spp., Osteochilus
hasselti, Leptobarbus hoeveni, Megalobrama spp.)
kg.
30%
- ”;
(iii) for heading 0302, tariff items 0302 11 00 to 0302 85 00, sub-heading 0302 89, tariff items 0302 89 10 to 0302 90 00
and the entries relating thereto, the following shall be substituted, namely:—
“0302
FISH, FRESH OR CHILLED, EXCLUDING FISH FILLETS AND
OTHER FISH MEAT OF HEADING 0304
-
Salmonidae, excluding edible fish offal of sub-headings 0302 91
to 0302 99:
0302 11 00
--
Trout (Salmo trutta, Oncorhyncus mykiss, Oncorhyncus clarkii,
Oncorhyncus aguabonita, Oncorhyncus gilae, Oncorhyncus
apache and Oncorhyncus chrysogaster)
kg.
30%
-
0302 13 00
--
Pacific salmon (Oncorhynchus nerka, Oncorhynchus gorbuscha,
Oncorhynchus keta,
Oncorhynchus
tschawytscha,
Oncorhynchus kisutch,
Oncorhynchus masou and
Oncorhynchus rhodurus)
kg.
30%
-
0302 14 00
--
Atlantic salmon (Salmo salar) and Danube salmon (Hucho hucho)
kg.
30%
-
0302 19 00
--
Other
kg.
30%
-
-
Flat fish (Pleuronectidae, Bothidae, Cynoglossidae, Soleidae,
Scophthalmidae and Citharidae), excluding edible fish offal of
sub-headings 0302 91 to 0301 99:
0302 21 00
--
Halibut (Rheinhardtius hippoglossidae, Hippoglossus hippoglossus,
Hippoglossus stenolepis)
kg.
30%
-
35 0302 22 00
--
Plaice (Pleuronectes platessa)
kg.
30%
-
0302 23 00
--
Sole (Solea spp.)
kg.
30%
-
0302 24 00
--
Turbots (Psetta maxima)
kg.
30%
-
0302 29 00
--
Other
kg.
30%
-
-
Tunas (of the genus Thunnus), skipjack or stripe-bellied bonito
(Euthynnus (Katsuwonus) pelamis), excluding edible fish offal
of sub-headings 0302 91 to 0301 99:
0302 31 00
--
Albacore or long finned tunas (Thunnus alalunga)
kg.
30%
-
0302 32 00
--
Yellowfin tunas (Thunnus albacares)
kg.
30%
-
0302 33 00
--
Skipjack or stripe-bellied bonito
kg.
30%
-
45 0302 34 00
--
Bigeye tunas (Thunnus obesus)
kg.
30%
-
0302 35 00
--
Atlantic and Pacific bluefin tunas (Thunnus thynnus, Thunnus orientalis)
kg.
30%
-
0302 36 00
--
Southern bluefin tunas (Thunnus maccoyii)
kg.
30%
-
20
25
30
40
87
88
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
0302 39 00
--
Other
-
Herrings (Clupea harengus, Clupea pallasii), anchovies
(Engraulis spp.), sardines (Sardina pilchardus, Sardinops
spp.), sardinella (Sardinella spp.), brisling or sprats (Sprattus
sprattus), mackerel (Scomber scombrus, Scomber
australasicus, Scomber japonicus), Indian mackerels
(Rastrelliger spp.), seerfishes (Scomberomorus spp.), jack
and horse mackerel (Trachurus spp.), jacks, crevalles (Caranx
spp.), cobia (Rachycentron canadum), silver pomfrets (Pampus
spp.), Pacific saury (Cololabis saira), scads (Decapterus spp.),
capelin (Mallotus villosus), Sword fish (Xiphias gladius),
Kawakawa (Euthynnus affinis), bonitos (Sarda spp.), marlins,
sailfishes, spearfish (Istiophoridae), excluding edible fish offal
of sub-headings 0302 91 to 0302 99:
kg.
Rate of Duty
Standard Preferential
(4)
30%
(5)
5
10
15
0302 41 00
--
Herrings (Clupea harengus, Clupea pallasii)
kg.
30%
-
0302 42 00
--
Anchovies (Engraulis spp.)
kg.
30%
-
0302 43 00
--
Sardines (Sardina pilchardus, Sardinops spp.), sardinella
(Sardinella spp.), brisling or sprats (Sprattus sprattus)
kg.
30%
-
0302 44 00
--
Mackerel (Scomber scombrus, Scomber australasicus,
Scomber japonicus)
kg.
30%
-
0302 45 00
--
Jack and horse mackerel (Trachurus spp.)
kg.
30%
-
0302 46 00
--
Cobia (Rachycentron canadum)
kg.
30%
-
0302 47 00
--
Sword fish (Xiphias gladius)
kg.
30%
-
0302 49 00
--
Other
kg.
30%
-
-
Fish of the families Bregmacerotidae, Euclichthyidae, Gadidae,
Macrouridae, Melanonidae, Merlucciidae, Moridae and
Muraenolepididae, excluding edible fish offal of sub-headings
0302 91 to 0302 99:
20
25
30
0302 51 00
--
Cod (Gadus morhua, Gadus ogac, Gadus macrocephalus)
kg.
30%
-
0302 52 00
--
Haddock (Melangrammus aegllefinus)
kg.
30%
-
0302 53 00
--
Coal fish (Pollachinus virens)
kg.
30%
-
0302 54 00
--
Hake (Merluccius spp., Urophycis spp.)
kg.
30%
-
0302 55 00
--
Alaska Pollack (Theragra chalcogramma)
kg.
30%
-
0302 56 00
--
Blue whittings (Micromesistius poutassou, Micromesistius australis)
kg.
30%
-
0302 59 00
--
Other
kg.
30%
-
-
Tilapias (Oreochromis spp.), catfish (Pangasius spp., Silurus
spp., Clarias spp., Ictalurus spp.), carp (Cyprinus spp.,
Carassius
spp.,
Ctenopharyngodon
idellus,
Hypophthalmichthys spp., Cirrhinus spp., Mylopharyngodon
piceus, Catla catla, Labeo spp., Osteochilus hasselti,
Leptobarbus hoeveni, Megalobrama spp.), eels (Anguilla
spp.), Nile perch (Lates niloticus) and snakeheads (Channa
spp.), excluding edible fish offal of sub-headings 0302 91 to
0302 99:
35
40
45
0302 71 00
--
Tilapias (Oreochromis spp.),
kg.
30%
-
0302 72 00
--
Catfish (Pangasius spp., Silurus spp., Clarias spp., Ictalurus spp.)
kg.
30%
-
0302 73 00
--
Carp (Cyprinus spp., Carassius spp., Ctenopharyngodon idellus,
Hypophthalmichthys spp., Cirrhinus spp., Mylopharyngodon
piceus, Catla catla, Labeo spp., Osteochilus hasselti,
kg.
30%
-
50
89
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
Rate of Duty
Standard Preferential
(4)
(5)
Leptobarbus hoeveni, Megalobrama spp.):
0302 74 00
--
Eels (Anguilla spp.)
kg.
30%
-
0302 79 00
--
Other
kg.
30%
-
-
Other fish exculding edible fish offal of sub-headings 0302 91
to 0302 99:
0302 81 00
--
Dogfish and other sharks
kg.
30%
-
10 0302 82 00
--
Rays and skates (Rajidae)
kg.
30%
-
0302 83 00
--
Tooth fish (Dissostichus spp.)
kg.
30%
-
0302 84 00
--
Seabass (Dicentrarchus spp.)
kg.
30%
-
0302 85 00
--
Seabream (Sparidae)
kg.
30%
-
0302 89
--
Other:
15 0302 89 10
- - -
Hilsa ( Tenualosa ilisha)
kg.
30%
-
0302 89 20
- - -
Dara
kg.
30%
-
0302 89 30
- - -
Pomfret
kg.
30%
-
0302 89 90
- - -
Other
kg.
30%
-
-
Livers, roes, milt, fish fins, heads, tails, maws and other edible
fish offal:
0302 91
- -
Livers, roes and milt:
0302 91 10
- - -
Livers, roes and milt
kg.
30%
-
0302 92
- -
Shark fins:
0302 92 10
- - -
Shark fins
kg.
30%
-
- -
Other:
0302 99 10
- - -
Fish fins other than shark fins; heads, tails and maws
kg.
30%
-
0302 99 90
- - -
Other edible fish offal
kg.
30%
- ”;
5
20
25 0302 99
30
(iv) for heading 0303, tariff items 0303 11 00 to 0303 69 00, sub-heading 0303 81, tariff items 0303 81 10 to 0303 84 00,
sub-heading 0303 89, tariff items 0303 89 10 to 0303 89 99, sub-heading 0303 90, tariff items 0303 90 10 to 0303 90 90 and
the entries relating thereto, the following shall be substituted, namely:—
“0303
FISH, FROZEN, EXCLUDING FISH FILLETS AND OTHER
FISH MEAT OF HEADING 0304
-
Salmonidae, excluding edible fish offal of sub-headings
0303 91 to 0303 99:
35 0303 11 00
--
Sockeye salmon (red salmon) (Oncorhynchus nerka)
kg.
30%
-
0303 12 00
--
Other Pacific salmon (Oncorhynchus gorbuscha, Oncorhynchus
keta, Oncorhynchus tschawytscha, Oncorhynchus kisutch,
Oncorhynchus masou and Oncorhynchus rhodurus)
kg.
30%
-
0303 13 00
--
Atlantic salmon (Salmo salar) and Danube salmon (Hucho hucho)
kg.
30%
-
0303 14 00
--
Trout (Salmo trutta, Oncorhynchus mykiss, Oncorhynchus
clarkii, Oncorhynchus aguabonita, Oncorhynchus gilae,
Oncorhynchus apache and Oncorhynchus chrysogaster)
kg.
30%
-
0303 19 00
--
Other
kg.
30%
-
-
Tilapias (Oreochromis spp.), catfish (Pangasius spp., Silurus
40
90
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
Rate of Duty
Standard Preferential
(4)
(5)
spp., Clarias spp., Ictalurus spp.), carp (Cyprinus carpio,
Carassius carassius,
Ctenopharyngodon idellus,
Hypophthalmichthys spp., Cirrhinus spp., Mylopharyngodon
piceus, Catla catla, Labeo spp., Osteochilus hasselti,
Leptobarbus hoeveni, Megalobroma spp., eels (Anguilla spp.),
Nile perch (Lates niloticus) and snakeheads, (Channa spp.),
excluding edible fish offal of sub-headings 0303 91 to 0303 99:
5
10
0303 23 00
--
Tilapias (Oreochromis spp.)
kg.
30%
-
0303 24 00
--
Catfish (Pangasius spp., Silurus spp., Clarias spp., Ictalurus spp.)
kg.
30%
-
0303 25 00
--
Carp (Cyprinus carpio, Carassius carassius, Ctenopharyngodon
idellus, Hypophthalmichthys spp., Cirrhinus spp.,
Mylopharyngodon piceus, Catla catla, Labeo spp., Osteochilus
hasselti, Leptobarbus hoeveni, Megalobroma spp.)
kg.
30%
15
0303 26 00
--
Eels (Anguilla spp.)
kg.
30%
-
0303 29 00
--
Other
kg.
30%
-
-
Flat fish (Pleuronectidae, Bothidae, Cynoglossidae, Soleidae,
Scophthalmidae and Citharidae), excluding edible fish offal of
sub-headings 0303 91 to 0303 99:
20
0303 31 00
- -
Halibut (Rheinhardtius hippoglossidae, Hippoglossus hippoglossus,
Hippoglossus stenolepis)
kg.
30%
-
0303 32 00
- -
Plaice (Pleuronectes platessa)
kg.
30%
-
0303 33 00
- -
Sole (Solea spp.)
kg.
30%
-
0303 34 00
- -
Turbots (Psetta maxima)
kg.
30%
-
0303 39 00
- -
Other
kg.
30%
-
-
Tunas (of the genus Thunnus), skipjack or stripe-bellied bonito
(Euthynnus (Katsuwonus) pelamis), excluding edible fish offal
of sub-headings 0303 91 to 0303 99:
25
30
0303 41 00
- -
Albacore or long finned tunas (Thunnus alalunga)
kg.
30%
-
0303 42 00
- -
Yellowfin tunas (Thunnus albacares)
kg.
30%
-
0303 43 00
- -
Skipjack or stripe-bellied bonito
kg.
30%
-
0303 44 00
- -
Bigeye tunas (Thunnus obesus)
kg.
30%
-
0303 45 00
- -
Atlantic and Pacific bluefin tunas (Thunnus thynnus, Thunnus
orientalis)
kg.
30%
-
0303 46 00
- -
Southern bluefin tunas (Thunnus maccoyii)
kg.
30%
-
0303 49 00
- -
Other
kg.
30%
-
-
Herrings (Clupea harengus, Clupea pallasii), anchovies
(Engraulis spp.), sardines (Sardina pilchardus, Sardinops
spp.), sardinella (Sardinella spp.), brisling or sprats (Sprattus
sprattus), mackerel (Scomber scombrus, Scomber
australasicus, Scomber japonicus), Indian mackerels
(Rastrelliger spp.), seerfishes (Scomberomorus spp.), jack
and horse mackerel (Trachurus spp.), jacks, crevalles (Caranx
spp.), cobia (Rachycentron canadum), silver pomfrets (Pampus
spp.), Pacific saury (Cololabis saira), scads (Decapterusspp.),
capelin (Mallotus villosus), Sword fish (Xiphias gladius),
Kawakawa (Euthynnus affinis), bonitos (Sarda spp.), marlins,
sailfishes, spearfish (Istiophoridae), excluding edible fish offal
of sub-headings 0303 91 to 0303 99:
35
40
45
50
91
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
Rate of Duty
Standard Preferential
(4)
(5)
0303 51 00
--
Herrings (Clupea harengus, Clupea pallasii)
kg.
30%
-
5 0303 53 00
--
Sardines (Sardina pilchardus, Sardinops spp.), sardinella
(Sardinella spp.), brisling or sprats (Sprattus sprattus)
kg.
30%
-
0303 54 00
--
Mackerel (Scomber scombrus, Scomber australasicus,
Scomber japonicus)
kg.
30%
-
0303 55 00
--
Jack and horse mackerel (Trachurus spp.)
kg.
30%
-
10 0303 56 00
--
Cobia (Rachycentron canadum)
kg.
30%
-
0303 57 00
--
Sword fish (Xiphias gladius)
kg.
30%
-
0303 59 00
--
Other
kg.
30%
-
-
Fish of the families Bregmacerotidae, Euclichthyidae, Gadidae,
Macrouridae, Melanonidae, Merlucciidae, Moridae and
Muraenolepididae, excluding edible fish offal of sub-headings
0303 91 to 0303 99:
0303 63 00
--
Cod (Gadus morhua, Gadus ogac, Gadus macrocephalus)
kg.
30%
-
0303 64 00
--
Haddock (Melanogrammus aeglefinus)
kg.
30%
-
0303 65 00
--
Coal fish (Pollachius virens)
kg.
30%
-
20 0303 66 00
--
Hake (Merluccius spp., Urophycis spp.)
kg.
30%
-
0303 67 00
--
Alaska Pollack (Theragra chalcogramma)
kg.
30%
-
0303 68 00
--
Blue whitings (Micromesistius poutassou, Micromesistiusaustralis)
kg.
30%
-
0303 69 00
--
Other
kg.
30%
-
-
Other fish, excluding edible fish offal of sub-headings 0303 91
to 0303 99:
0303 81
--
Dogfish and other sharks:
0303 81 10
---
Dogfish
kg.
30%
-
0303 81 90
---
Other Sharks
kg.
30%
-
0303 82 00
--
Rays and skates (Rajidae)
kg.
30%
-
30 0303 83 00
--
Tooth fish (Dissostichus spp.)
kg.
30%
-
0303 84 00
--
Seabass (Dicentrarchus spp.)
kg.
30%
-
0303 89
--
Other:
0303 89 10
---
Hilsa (Tenualosa ilisha)
kg.
30%
-
0303 89 20
---
Dara
kg.
30%
-
35 0303 89 30
---
Ribbon fish
kg.
30%
-
0303 89 40
---
Seer
kg.
30%
-
0303 89 50
---
Pomfret (white or silver or black)
kg.
30%
-
0303 89 60
---
Ghol
kg.
30%
-
0303 89 70
---
Threadfin
kg.
30%
-
0303 89 80
---
Croakers, groupers and flounders
kg.
30%
-
0303 89 90
---
Other
kg.
30%
-
-
Livers, roes, milt, fish fins, heads, tails, maws and other
edible fish offal:
15
25
40
92
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
Rate of Duty
Standard Preferential
(4)
(5)
0303 91
- -
Livers, roes and milt:
0303 91 10
- - -
Egg or egg yolk of fish
kg.
30%
-
0303 91 90
- - -
Other
kg.
30%
-
0303 92
- -
Shark fins:
0303 92 10
- - -
Shark fins
kg.
30%
-
0303 99
- -
Other:
0303 99 10
- - -
Fish fins other than shark fins, heads, tails and maws
kg.
30%
-
0303 99 90
- - -
Other edible fish offal
kg.
30%
- ”;
5
10
(v) in heading 0304,—
(a) for the entry in column (2) occurring after the entry against heading 0304, the following shall be substituted,
namely:—
“-
Fresh or chilled fillets of tilapias (Oreochromis spp.), catfish
(Pangasius spp., Silurus spp., Clarias spp., Ictalurus spp.),
carp (Cyprinus spp., Carassius spp., Ctenopharyngodon
idellus, Hypophthalmichthys spp., Cirrhinus spp.,
Mylopharyngodon piceus, Catla catla, Labeo spp., Osteochilus
hasselti, Leptobarbus hoeveni, Megalobrama spp.), eels
(Anguilla spp.), Nile perch (Lates niloticus) and snakeheads
(Channa spp.):”;
15
20
(b) for tariff items 0304 46 00 to 0304 99 00 and the entries relating thereto, the following shall be substituted,
namely:—
“0304 46 00
- -
Tooth fish (Dissostichus spp.)
kg.
30%
-
0304 47 00
- -
Dogfish and other sharks
kg.
30%
-
0304 48 00
- -
Rays and skates (Rajidae)
kg.
30%
-
0304 49
- -
Other:
0304 49 10
---
Hilsa (Tenualosa ilisha)
kg.
30%
-
0304 49 30
---
Seer
kg.
30%
-
0304 49 40
---
Tuna
kg.
30%
-
0304 49 90
---
Other
kg.
30%
-
30%
-
0304 51 00
-
Other, fresh or chilled:
- -
Tilapias (Oreochromis spp.), catfish (Pangasius spp., Silurus
spp., Clarias spp., Ictalurus spp.), carp (Cyprinus spp.,
Carassius
spp.,
Ctenopharyngodon
idellus,
Hypophthalmichthys spp., Cirrhinus spp., Mylopharyngodon
piceus, Catla catla, Labeo spp., Osteochilus hasselti,
Leptobarbus hoeveni, Megalobrama spp.), eels (Anguilla
spp.), Nile perch (Lates niloticus) and snakeheads (Channa
spp.)
kg.
25
30
35
40
0304 52 00
--
Salmonidae
kg.
30%
-
0304 53 00
--
Fish of the families Bregmacerotidae, Euclichthyidae, Gadidae,
Macrouridae, Melanonidae, Merlucciidae, Moridae and
Muraenolepididae
kg.
30%
45
0304 54 00
--
Sword fish (Xiphias gladius)
kg.
30%
-
0304 55 00
--
Tooth fish (Dissostichus spp.)
kg.
30%
-
93
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
Rate of Duty
Standard Preferential
(4)
(5)
0304 56 00
- -
Dogfish and other sharks
kg.
30%
-
0304 57 00
- -
Rays and skates (Rajidae)
kg.
30%
-
0304 59
--
Other:
0304 59 10
---
Hilsa (Tenualosa ilisha)
kg.
30%
-
0304 59 30
---
Seer
kg.
30%
-
0304 59 40
---
Tuna
kg.
30%
-
10 0304 59 90
---
Other
kg.
30%
-
-
Frozen fillets of tilapias (Oreochromis spp.), catfish (Pangasius
spp., Silurus spp., Clarias spp., Ictalurus spp.), carp (Cyprinus
spp., Carassius spp., Ctenopharyngodon idellus,
Hypophthalmichthys spp., Cirrhinus spp., Mylopharyngodon
piceus, Catla catla, Labeo spp., Osteochilus hasselti,
Leptobarbus hoeveni, Megalobrama spp.), eels (Anguilla
spp.), Nile perch (Lates niloticus) and snakeheads (Channa
spp.):
0304 61 00
--
Tilapias (Oreochromis spp.)
kg.
30%
-
20 0304 62 00
--
Catfish (Pangasius spp., Silurus spp., Clarias spp., Ictalurus spp.)
kg.
30%
-
0304 63 00
--
Nile Perch (Lates niloticus)
kg.
30%
-
0304 69 00
--
Other
kg.
30%
-
-
Frozen fillets of fish of Bregmacerotidae, Euclichthyidae,
Gadidae, Macrouridae, Melanonidae, Merlucciidae, Moridae
and Muraenolepididae:
0304 71 00
--
Cod (Gadus morhua, Gadus ogac, Gadus macrocephalus)
kg.
30%
-
0304 72 00
--
Haddock (Melanogrammus aeglefinus)
kg.
30%
-
0304 73 00
--
Coal fish (Pollachius virens)
kg.
30%
-
0304 74 00
--
Hake (Merluccius spp., Urophycis spp.)
kg.
30%
-
30 0304 75 00
--
Alaska Pollack (Theragra chalcogramma)
kg.
30%
-
0304 79 00
--
Other
kg.
30%
-
-
Frozen fillets of other fish:
0304 81 00
--
Pacific salmon (Oncorhynchus nerka, Oncorhynchus gorbuscha,
Oncorhynchus keta,
Oncorhynchus tschawytscha,
Oncorhynchus kisutch, Oncorhynchus
masou and
Oncorhynchus rhodurus), Atlantic salmon (Salmo salar) and
Danube salmon (Hucho hucho)
kg.
30%
-
0304 82 00
--
Trout (Salmo trutta, Oncorhynchus mykiss, Oncorhynchus
clarkii, Oncorhynchus aguabonita, Oncorhynchus gilae,
Oncorhynchus apache and Oncorhynchus chrysogaster)
kg.
30%
-
0304 83 00
--
Flat fish (Pleuronectidae, Bothidae, Cynoglossidae, Soleidae,
Scophthalmidae and Citharidae)
kg.
30%
-
0304 84 00
--
Sword fish (Xiphias gladius)
kg.
30%
-
0304 85 00
--
Tooth fish (Dissostichus spp.)
kg.
30%
-
45 0304 86 00
--
Herrings (Clupea harengus, Clupea pallasii)
kg.
30%
-
0304 87 00
--
Tunas (of the genus Thunnus), skipjack or stripe-bellied bonito
kg.
30%
-
5
15
25
35
40
94
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
Rate of Duty
Standard Preferential
(4)
(5)
(Euthynnus (Katsuwonus) pelamis)
0304 88
--
Dogfish, other sharks Rays and skates (Rajidae):
0304 88 10
---
Dogfish
kg.
30%
-
0304 88 20
---
Other sharks
kg.
30%
-
0304 88 30
---
Rays and skates (Rajidae)
kg.
30%
-
0304 89
--
Other:
0304 89 10
---
Hilsa (Tenualosa ilisha)
kg.
30%
-
0304 89 30
---
Seer
kg.
30%
-
0304 89 40
---
Tuna
kg.
30%
-
0304 89 90
---
Other
kg.
30%
-
-
Other, frozen:
0304 91 00
--
Sword fish (Xiphias gladius)
kg.
30%
-
0304 92 00
--
Tooth fish (Dissostichus spp.)
kg.
30%
-
0304 93 00
--
Tilapias (Oreochromis spp.), catfish (Pangasius spp., Silurus
spp., Clarias spp., Ictalurus spp.), carp (Cyprinus spp.,
Carassius
spp.,
Ctenopharyngodon
idellus,
Hypophthalmichthys spp., Cirrhinus spp., Mylopharyngodon
piceus, Catla catla, Labeo spp., Osteochilus hasselti,
Leptobarbus hoeveni, Megalobrama spp.), eels (Anguilla
spp.), Nile perch (Lates niloticus) and snakeheads (Channa
spp.)
kg.
30%
-
5
10
15
20
0304 94 00
--
Alaska Pollack (Theragra chalcogramma)
kg.
30%
-
0304 95 00
--
Fish of the families Bregmacerotidae, Euclichthyidae, Gadidae,
Macrouridae, Melanonidae, Merlucciidae, Moridae and
Muraenolepididae, Alaska Pollack (Theragra chalcogramma)
kg.
30%
-
0304 96 00
--
Dogfish and other sharks
kg.
30%
-
0304 97 00
--
Rays and skates (Rajidae)
kg.
30%
-
0304 99 00
--
Other
kg.
30%
- ”;
25
30
(vi) in heading 0305,—
(a) for tariff item 0305 20 00 and the entries relating thereto, the following shall be substituted, namely:—
“0305 20 00
-
Livers, roes and milt of fish, dried, smoked, salted or in brine
kg.
30%
- ”;
(b) for tariff item 0305 31 00 and the entries relating thereto, the following shall be substituted, namely:—
“0305 31 00
--
Tilapias (Oreochromis spp.), catfish (Pangasius spp., Silurus
spp., Clarias spp., Ictalurus spp.), carp (Cyprinus spp.,
Carassius
spp.,
Ctenopharyngodon
idellus,
Hypophthalmichthys spp., Cirrhinus spp., Mylopharyngodon
piceus, Catla catla, Labeo spp., Osteochilus hasselti,
Leptobarbus hoeveni, Megalobrama spp.), eels (Anguilla
spp.), Nile perch (Lates niloticus) and snakeheads (Channa
spp.)
kg.
30%
35
- ”;
40
(c) for tariff item 0305 44 00 and the entries relating thereto, the following shall be substituted, namely:—
“0305 44 00
--
Tilapias (Oreochromis spp.), catfish (Pangasius spp., Silurus
spp., Clarias spp., Ictalurus spp.), carp (Cyprinus spp.,
Carassius
spp.,
Ctenopharyngodon
idellus,
Hypophthalmichthys spp., Cirrhinus spp., Mylopharyngodon
kg.
30%
- ”;
45
95
Tariff Item
Description of goods
(1)
(2)
piceus, Catla catla, Labeo spp., Osteochilus hasselti,
Leptobarbus hoeveni, Megalobrama spp.), eels (Anguilla
spp.), Nile perch (Lates niloticus) and snakeheads (Channa
spp.)
5
Unit
(3)
Rate of Duty
Standard Preferential
(4)
(5)
(d) after tariff item 0305 51 00 and the entries relating thereto, the following shall be inserted, namely:—
“0305 52 00
--
Tilapias (Oreochromis spp.), catfish (Pangasius spp., Silurus
spp., Clarias spp., Ictalurus spp.), carp (Cyprinus spp.,
Carassius
spp.,
Ctenopharyngodon
idellus,
Hypophthalmichthys spp., Cirrhinus spp., Mylopharyngodon
piceus, Catla catla, Labeo spp., Osteochilus hasselti,
Leptobarbus hoeveni, Megalobrama spp.), eels (Anguilla
spp.), Nile perch (Lates niloticus) and snakeheads (Channa
spp.)
kg.
30%
-
0305 53 00
--
Fish of the families Bregmacerotidae, Euclichthyidae, Gadidae,
Macrouridae, Melanonidae, Merlucciidae, Moridae and
Muraenolepididae, other than cod ( Gadus morhua, Gadus
ogac, Gadus macrocephalus)
kg.
30%
-
0305 54 00
--
Herrings (Clupea harengus, Clupea pallasii), anchovies
(Engraulis spp.), sardines (Sardina pilchardus, Sardinops
spp.), sardinella (Sardinella spp.), brisling or sprats (Sprattus
sprattus), mackerel (Scomber scombrus, Scomber
australasicus, Scomber japonicus), Indian mackerels
(Rastrelliger spp.), seerfishes (Scomberomorus spp.), jack
and horse mackerel (Trachurus spp.), jacks, crevalles (Caranx
spp.), cobia (Rachycentron canadum), silver pomfrets (Pampus
spp.), Pacific saury (Cololabis saira), scads (Decapterus spp.),
capelin (Mallotus villosus), Sword fish (Xiphias gladius),
Kawakawa (Euthynnus affinis), bonitos (Sarda spp.), marlins,
sailfishes, spearfish (Istiophoridae)
kg.
30%
- ”;
10
15
20
25
30
(e) for tariff item 0305 64 00 and the entries relating thereto, the following shall be substituted, namely:—
“0305 64 00
--
35
40
Tilapias (Oreochromis spp.), catfish (Pangasius spp., Silurus
spp., Clarias spp., Ictalurus spp.), carp (Cyprinus spp.,
Carassius
spp.,
Ctenopharyngodon
idellus,
Hypophthalmichthys spp., Cirrhinus spp., Mylopharyngodon
piceus, Catla catla, Labeo spp., Osteochilus hasselti,
Leptobarbus hoeveni, Megalobrama spp.), eels (Anguilla
spp.), Nile perch (Lates niloticus) and snakeheads (Channa
spp.)
kg.
30%
- ”;
(vii) in heading 0306, for tariff items 0306 19 00 to 0306 29 00 and the entries relating thereto, the following shall be
substituted, namely:—
“0306 19 00
--
45
-
Other, including flours, meals and pellets of crustaceans, fit
for human consumption
kg.
30%
-
Live, fresh or chilled:
0306 31 00
- -
Rock lobster and other sea crawfish (Palinurus spp., Jasus spp.)
kg.
30%
-
0306 32 00
- -
Lobsters ( Homarus spp.)
kg.
30%
-
0306 33 00
- -
Crabs
kg.
30%
-
50 0306 34 00
- -
Norway lobsters (Nephrops norvegicus)
kg.
30%
-
0306 35 00
- -
Cold water shrimps and prawns (Pandalus spp., Crangon crangon)
kg.
30%
-
0306 36 00
- -
Other shrimps and prawns
kg.
30%
-
0306 39 00
- -
Other, including flours, meals and pellets of crustaceans,
fit for human consumption
kg.
30%
-
96
Tariff Item
Description of goods
Unit
(2)
(3)
(1)
-
Rate of Duty
Standard Preferential
(4)
(5)
Other:
0306 91 00
- -
Rock lobster and other sea crawfish (Palinurus spp., Jasus spp.)
kg.
30%
-
0306 92 00
- -
Lobsters ( Homarus spp.)
kg.
30%
-
0306 93 00
- -
Crabs
kg.
30%
-
0306 94 00
- -
Norway lobsters (Nephrops norvegicus)
kg.
30%
-
0306 95 00
- -
Shrimps and prawns
kg.
30%
-
0306 99 00
- -
Other, including flours, meals and pellets of crustaceans,
fit for human consumption
kg.
30%
- ”;
5
10
(viii) in heading 0307, (a) after tariff item 0307 11 00 and the entries relating thereto, the following shall be inserted, namely:—
“0307 12 00
- -
Frozen
kg.
30%
- ”;
(b) after tariff item 0307 21 00 and the entries relating thereto, the following shall be inserted, namely:—
“0307 22 00
- -
Frozen
kg.
30%
15
- ”;
(c) after tariff item 0307 31 00 and the entries relating thereto, the following shall be inserted, namely:—
“0307 32 00
- -
Frozen
kg.
30%
- ”;
(d) for tariff items 0307 39 90 to 0307 49 90 and the entries relating thereto, the following shall be substituted,
namely:—
“0307 39 90
---
Other
kg.
30%
-
20
Cuttle fish and squid:
0307 42
--
Live, fresh or chilled:
0307 42 10
---
Cuttle fish
kg.
30%
-
0307 42 20
---
Squid
kg.
30%
-
0307 43
--
Frozen:
0307 43 10
---
Cuttle fish
kg.
30%
-
0307 43 20
---
Whole squids
kg.
30%
-
0307 43 30
---
Squid tubes
kg.
30%
-
0307 49
--
Other:
0307 49 10
---
Cuttle fish
kg.
30%
-
0307 49 20
---
Whole squids
kg.
30%
-
0307 49 30
---
Squid tubes
kg.
30%
-
0307 49 40
---
Dried squids
kg.
30%
-
0307 49 90
---
Other
kg.
30%
- ”;
25
30
35
(e ) after tariff item 0307 51 00 and the entries relating thereto, the following shall be inserted, namely:—
“0307 52 00
- -
Frozen
kg.
30%
- ”;
(f ) after tariff item 0307 71 00 and the entries relating thereto, the following shall be inserted, namely:—
“0307 72 00
- -
Frozen
kg.
30%
- ”;
(g) for tariff items 0307 79 00 to 0307 89 00 and the entries relating thereto, the following shall be substituted,
namely:—
40
97
Tariff Item
Description of goods
(1)
“0307 79 00
(2)
--
5
Other
Unit
Rate of Duty
Standard Preferential
(3)
kg.
(4)
30%
(5)
-
Abalone (Haliotis Spp.)and stromboid conchs (Strombus spp.):
0307 81 00
--
Live, fresh or chilled abalone (Haliotis spp.)
kg.
30%
-
0307 82 00
--
Live, fresh or chilled stromboid conchs (Strombus spp.)
kg.
30%
-
0307 83 00
--
Frozen abalone (Haliotis spp.)
kg.
30%
-
0307 84 00
--
Frozen stromboid conchs (Strombus spp.)
kg.
30%
-
10 0307 87 00
--
Other abalone (Haliotis spp.)
kg.
30%
-
0307 88 00
--
Other stromboid conchs (Strombus spp.)
kg.
30%
- ”;
(h ) after tariff item 0307 91 00 and the entries relating thereto, the following shall be inserted, namely:—
“0307 92 00
- -
Frozen
kg.
30%
- ”;
(ix) in heading 0308,—
(a) for the entry in column (2) occurring after the entry against heading 0308, the following shall be substituted,
namely:—
15
“- Sea cucumbers (Stichopus japonicus, Holothuroidea):”;
(b) after tariff item 0308 11 00 and the entries relating thereto, the following shall be inserted, namely:—
“0308 12 00
- -
Frozen
kg.
30%
- ”;
(c) for tariff items 0308 19 00 to 0308 21 00 and the entries relating thereto, the following shall be substituted,
namely:—
20
“0308 19 00
25 0308 21 00
0308 22 00
--
Other
kg.
30%
-
-
Sea urchins (Strongylocentrotus spp., Paracentrotus lividus,
Loxechinus albus, Echinus esculentus):
--
Live, fresh or chilled
kg.
30%
-
- -
Frozen
kg.
30%
- ”;
(2) in Chapter 4, in Note 4,—
(A) in clause (a), the word “or”shall be omitted;
(B) after clause (a), the following clause shall be inserted, namely:—
30
“(b) products obtained from milk by replacing one or more of its natural constituents (for example, butyric fats) by another
substance (for example, oleic fats) (heading 1901 or 2106); or”;
(C) the existing clause (b) shall be re-lettered as (c );
(3) in Chapter 5, for Note 4, the following Note shall be substituted, namely:—
35
“4. Throughout the Schedule, the expression “horsehair” means hair of the manes or tails of equine or bovine animals.
Heading 0511 covers, inter alia, horsehair and horsehair waste, whether or not put up as a layer with or without supporting
material.”;
(4) in Chapter 8, in heading 0805, for tariff item 0805 20 00 and the entries relating thereto, the following shall be substituted,
namely:—
“-
Mandarins (including tangerines and satsumas); clementines, wilkings and similar citrus hybrids:
40 0805 21 00
--
Mandarins (including tangerines and satsumas)
kg.
30%
-
0805 22 00
--
Clementines
kg.
30%
-
0805 29 00
--
Other
kg.
30%
- ”;
(5) in Chapter 12,—
(i) for heading 1211 and the entries relating thereto, the following shall be substituted, namely:—
98
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
“1211
Rate of Duty
Standard Preferential
(4)
(5)
PLANTS AND PARTS OF PLANTS (INCLUDING SEEDS AND
FRUITS), OF A KIND USED PRIMARILY IN PERFUMERY, IN
PHARMACY OR FOR INSECTICIDAL, FUNGICIDAL OR
SIMILAR PURPOSE, FRESH, CHILLED, FROZEN OR DRIED,
WHETHER OR NOT CUT, CRUSHED OR POWDERED”;
5
(ii) after tariff item 1211 40 00 and the entries relating thereto, the following shall be inserted, namely:—
“1211 50 00
-
Ephedra
kg.
30%
- ”;
10
(6) in Chapter 13, in heading 1302, after tariff item 1302 13 00 and the entries relating thereto, the following shall be inserted,
namely:—
“1302 14 00
--
Of ephedra
kg.
30%
- ”;
(7) in Chapter 16,—
(i) in Sub-heading Note 1, for the words “as infant food”, the words “as food suitable for infants or young children” shall be
substituted;
15
(ii) in heading 1604, after tariff item 1604 17 00 and the entries relating thereto, the following shall be inserted, namely:—
“1604 18 00
--
Shark fins
kg.
30%
- ”;
(8) in Chapter 19, for sub-heading 1901 10 and the entries relating thereto, the following shall be substituted, namely:—
“1901 10
-
Preparations suitable for infants or young children, put up for retail sale:”;
20
(9) in Chapter 20,—
(i) in Sub-heading Note 1, for the words “as infant food”, the words “as food suitable for infants or young children” shall be
substituted;
(ii) in Sub-heading Note 2, for the words “as infant food”, the words “as food suitable for infants or young children” shall
be substituted;
25
(10) in Chapter 21, in Sub-heading Note 3, for the words “as infant food”, the words “as food suitable for infants or young
children” shall be substituted ;
(11) in Chapter 22,—
(i) for sub-heading 2202 90, tariff items 2202 90 10 to 2202 90 90 and the entries relating thereto, the following shall be
substituted, namely:—
“-
Other:
2202 91 00
--
Non alcoholic beer
2202 99
--
Other:
2202 99 10
---
2202 99 20
l
30%
-
Soya milk drinks, whether or not sweetened or flavoured
l
30%
-
---
Fruit pulp or fruit juice based drink
l
30%
-
2202 99 30
---
Beverages containing milk
l
30%
-
2202 99 90
---
Other
l
30%
- ”;
30
35
(ii) after tariff item 2204 21 90 and the entries relating thereto, the following shall be inserted, namely:—
“2204 22
--
In containers holding more than 2 l but not more than 10 l:
2204 22 10
---
Port and other red wines
l
150%
-
2204 22 20
---
Sherry and other white wines
l
150%
-
2204 22 90
---
Other
l
150%
- ”;
(iii) for tariff item 2206 00 00 and the entries relating thereto, the following shall be substituted, namely:—
40
99
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
“2206 00 00
-
5
OTHER FERMENTED BEVERAGES (FOR EXAMPLE, CIDER,
PERRY, MEAD, SAKE); MIXTURES OF FERMENTED
BEVERAGES AND NON-ALCOHOLIC BEVERAGES, NOT
ELSEWHERE SPECIFIED OR INCLUDED
l
Rate of Duty
Standard Preferential
(4)
150%
(5)
- ”;
(12) in Chapter 27,—
(i) for Sub-heading Note 4, the following shall be substituted, namely:—
10
‘4. For the purposes of sub-heading 2710 12, “light oils and preparations”are those of which 90 % or more by volume
(including losses) distil at 210 °C according to the ISO 3405 method (equivalent to the ASTM D 86 method).’;
(ii) for tariff item 2707 50 00 and the entries relating thereto, the following shall be substituted, namely:—
“2707 50 00
-
15
Other aromatic hydrocarbon mixtures of which 65 % or more
by volume (including losses) distils at 250 °C by the ISO 3405
method (equivalent to the ASTM D 86 method)
kg.
10%
- ”;
(13) in Chapter 28,—
(i) for Note 7, the following shall be substituted, namely:—
“7. Heading 2853 includes copper phosphide (phosphor copper) containing more than 15 % by weight of phosphorus.”;
(ii) after tariff item 2811 11 00 and the entries relating thereto, the following shall be inserted, namely:—
20 “2811 12 00
--
Hydrogen cyanide (hydrocyanic acid )
kg.
10%
- ”;
(iii) tariff item 2811 19 10 and the entries relating thereto shall be omitted;
(iv) for sub-heading 2812 10, tariff items 2812 10 10 to 2812 90 00 and the entries relating thereto, the following shall be
substituted, namely:—
“-
Chlorides and chloride oxides:
25 2812 11 00
--
Carbonyl dichloride (phosgene)
kg.
10%
-
2812 12 00
--
Phosphorous oxychloride
kg.
10%
-
2812 13 00
--
Phosphorous trichloride
kg.
10%
-
2812 14 00
--
Phosphorous pentachloride
kg.
10%
-
2812 15 00
--
Sulphur monochloride
kg.
10%
-
30 2812 16 00
--
Sulphur dichloride
kg.
10%
-
2812 17 00
--
Thionyl chloride
kg.
10%
-
2812 19
--
Other:
2812 19 10
---
Sulpur oxychloride
kg.
10%
-
2812 19 20
---
Silicon tetrachloride
kg.
10%
-
35 2812 19 30
---
Arsenous trichloride
kg.
10%
-
2812 19 90
---
Other
kg.
10%
-
2812 90 00
-
Other
kg.
10%
-”;
(v) the heading 2848, sub-heading 2848 00, tariff items 2848 00 10 to 2848 00 90 and the entries relating thereto shall be
omitted;
40
(vi) for heading 2853, sub-heading 2853 00, tariff items 2853 00 10 to 2853 00 99 and the entries relating thereto, the
following shall be substituted, namely:—
“2853
45
PHOSPHIDES, WHETHER OR NOT CHEMICALLY DEFINED,
EXCLUDING FERROPHOSPHORUS; OTHER INORGANIC
COMPOUNDS (INCLUDING DISTILLED OR CONDUCTIVITY
WATER AND WATER OF SIMILAR PURITY); LIQUID AIR
100
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
Rate of Duty
Standard Preferential
(4)
(5)
(WHETHER OR NOT RARE GASES HAVE BEEN REMOVED);
COMPRESSED AIR; AMALGAMS,
OTHER THAN
AMALGAMS OF PRECIOUS METALS
2853 10 00
-
Cyanogen chloride (chlorcyan)
2853 90
-
Other:
2853 90 10
---
2853 90 20
5
kg.
10%
-
Distilled or conductivity water and water of similar purity
kg.
10%
-
---
Liquid air, whether or not rare gases have been removed
kg.
10%
-
2853 90 30
---
Compressed air
kg.
10%
-
2853 90 40
---
Amalgams, other than of precious metals
kg.
10%
-
2853 90 90
---
Other
kg.
10%
- ”;
10
(14) in Chapter 29,—
(i) after tariff item 2903 82 00 and the entries relating thereto, the following shall be inserted, namely:—
“2903 83 00
--
Mirex (ISO)
kg.
10%
15
- ”;
(ii) after tariff item 2903 92 29 and the entries relating thereto, the following shall be inserted, namely:—
“2903 93 00
--
Pentachlorobenzene (ISO)
kg.
10%
-
2903 94 00
--
Hexabromobiphenyls
kg.
10%
- ”;
(iii) in heading 2904,—
20
(a) after tariff item 2904 20 90 and the entries relating thereto, the following shall be inserted, namely:—
“ -
Perfluorooctane sulphonic acid, its salts and perfluorooctane sulphonyl fluoride:
2904 31 00
--
Perfluorooctane sulphonic acid
kg.
10%
-
2904 32 00
--
Ammonium perfluorooctane sulphonate
kg.
10%
-
2904 33 00
--
Lithium perfluorooctane sulphonate
kg.
10%
-
2904 34 00
--
Potassium perfluorooctane sulphonate
kg.
10%
-
2904 35 00
--
Other salts of perfluorooctane sulphonic acid
kg.
10%
-
2904 36 00
--
Perfluorooctane sulphonyl fluoride
kg.
10%
- ”;
25
(b) for sub-heading 2904 90, tariff items 2904 90 10 to 2904 90 90 and the entries relating thereto, the following shall be
substituted, namely:—
30
“ -
Other:
2904 91 00
--
Trichloronitromethane (chloropicrin)
kg.
10%
-
2904 99
--
Other:
2904 99 10
---
2, 5 dichloronitrobenzene
kg.
10%
-
2904 99 20
---
Dinitrochlorebenzene
kg.
10%
-
2904 99 30
---
Meta nitrochlorobenzene
kg.
10%
-
2904 99 40
---
Ortho nitrochlorobenzene
kg.
10%
-
2904 99 50
---
Para nitrochlorobenzene
kg.
10%
-
2904 99 60
---
2-nitrochlorotoluene
kg.
10%
-
2904 99 70
---
Sodium meta nitrochlorobenzene sulphonate
kg.
10%
-
2904 99 90
---
Other
kg.
10%
- ”;
35
40
101
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
Rate of Duty
Standard Preferential
(4)
(5)
(iv) after tariff item 2910 40 00 and the entries relating thereto, the following shall be inserted, namely:—
5
“2910 50 00
-
Endrin (ISO)
kg.
10%
- ”;
(v) in heading 2914,—
(a) after tariff item 2914 61 00 and the entries relating thereto, the following shall be inserted, namely:—
“2914 62 00
10
--
Coenzyme Q10 (ubidecarenone (INN))
kg.
10%
- ”;
(b) for sub-heading 2914 70, tariff items 2914 70 10 to 2914 70 90 and the entries relating thereto, the following shall be
substituted, namely:—
“-
Halogenated, sulphonated, nitrated or nitrosated derivatives:
2914 71 00
--
Chlordecone (ISO)
2914 79
--
Other:
2914 79 10
---
15 2914 79 20
2914 79 90
kg.
10%
-
1-chloro anthraquinone
kg.
10%
-
---
Musk ketone
kg.
10%
-
---
Other
kg.
10%
- ”;
(vi) after tariff item 2918 16 90 and the entries relating thereto, the following shall be inserted, namely:—
“2918 17 00
20
--
2, 2-Diphenyl-2-hydroxyacetic acid (benzilic acid)
kg.
10%
- ”;
(vii) for sub-heading 2920 90, tariff items 2920 90 10 to 2920 90 44 and the entries relating thereto, the following shall be
substituted, namely:—
“ -
Phosphite esters and their salts; their halogenated, sulphonated,
nitrated or nitrosated derivatives:
2920 21 00
--
Dimethyl phosphite
kg.
10%
-
2920 22 00
--
Diethyl phosphite
kg.
10%
-
25 2920 23 00
--
Trimethyl phosphite
kg.
10%
-
2920 24 00
--
Triethyl phosphite
kg.
10%
-
2920 29
--
Other:
2920 29 10
---
Dimethyl sulphate
kg.
10%
-
2920 29 20
---
Diethyl sulphate
kg.
10%
-
30 2920 29 30
---
Tris (2, 3 Dibromopropyl) phosphate
kg.
10%
-
2920 29 90
---
Other
kg.
10%
-
2920 30 00
-
Endosulfan (ISO)
kg.
10%
- ”;
(viii) for sub-heading 2921 19, tariff items 2921 19 11 to 2921 19 90 and the entries relating thereto, the following shall be
substituted, namely:—
35 “2921 12 00
40
--
2-(N, N-Dimethylamino)ethylchloride hydrochloride
kg.
10%
-
2921 13 00
--
2-(N, N-Diethylamino)ethylchloride hydrochloride
kg.
10%
-
2921 14 00
--
2-(N, N-Diisopropylamino)ethylchloride hydrochloride
kg.
10%
-
2921 19
--
Other:
2921 19 10
---
2-Chloro N, N-Diisopropyl ethylamine
kg.
10%
-
2921 19 20
---
2-Chloro N, N-Dimethyl ethanamine
kg.
10%
-
2921 19 90
---
Other
kg.
10%
- ”;
(ix) for sub-heading 2922 12, tariff items 2922 12 10 to 2922 12 90 and the entries relating thereto, the following shall be
substituted, namely:—
102
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
“2922 12 00
--
Diethanolamine and its salts
kg.
Rate of Duty
Standard Preferential
(4)
10%
(5)
-”;
(x) for sub-heading 2922 13, tariff items 2922 13 10 to 2922 13 90, tariff item 2922 14 00, sub-heading 2922 19, tariff items
2922 19 40 to 2922 19 90 and the entries relating thereto, the following shall be substituted, namely:—
“2922 14 00
--
Dextropropoxyphene (INN) and its salts
kg.
10%
-
2922 15 00
--
Triethanolamine
kg.
10%
-
2922 16 00
--
Diethanolammonium perfluorooctane sulphonate
kg.
10%
-
2922 17
--
Methyldiethanolamine and ethyldiethanolamine:
2922 17 10
---
Methyldiethanolamine
kg.
10%
-
2922 17 20
---
Ethyldiethanolamine
kg.
10%
-
2922 18 00
--
2-(N, N-Diisopropylamino)ethanol
kg.
10%
-
2922 19
--
Other:
2922 19 10
---
2-Hydroxy N, N-Diisopropyl ethylamine
kg.
10%
-
2922 19 90
---
Other
kg.
10%
- ”;
5
10
15
(xi) after tariff item 2923 20 90 and the entries relating thereto, the following shall be inserted, namely:—
“2923 30 00
-
Tetraethylammonium perfluorooctane sulphonate
kg.
10%
-
2923 40 00
-
Didecyldimethylammonium perfluorooctane sulphonate
kg.
10%
- ”;
(xii) after tariff item 2924 24 00 and the entries relating thereto, the following shall be inserted, namely:—
“2924 25 00
--
Alachlor (ISO)
kg.
10%
20
- ”;
(xiii) after tariff item 2926 30 00 and the entries relating thereto, the following shall be inserted, namely:—
“2926 40 00
-
Alpha-phenylacetoacetonitrile
kg.
10%
- ”;
(xiv) for tariff item 2930 50 00 and the entries relating thereto, the following shall be substituted, namely:—
“2930 60 00
-
2-(N, N-Diethylamino)ethanethiol
kg.
10%
-
2930 70 00
-
Bis(2-hydroxyethyl)sulfide (thiodiglycol (INN))
kg.
10%
-
2930 80 00
-
Aldicarb (ISO), captafol (ISO) and methamidophos (ISO)
kg.
10%
- ”;
25
(xv) after tariff item 2931 20 00 and the entries relating thereto, the following shall be inserted, namely:—
“-
Other organo-phosphorous derivatives:
2931 31 00
--
Dimethyl methylphosphonate
kg.
10%
-
2931 32 00
--
Dimethyl propylphosphonate
kg.
10%
-
2931 33 00
--
Diethyl ethylphosphonate
kg.
10%
-
2931 34 00
--
Sodium 3-(trihydroxysilyl)propyl methylphosphonate
kg.
10%
-
2931 35 00
--
2, 4, 6-Tripropyl-1, 3, 5, 2, 4, 6-trioxatriphosphinane 2, 4, 6-trioxide
kg.
10%
-
2931 36 00
--
(5-Ethyl-2-methyl-2-oxido-1, 3, 2-dioxaphosphinan-5-yl)methyl
methyl methylphosphonate
kg.
10%
-
2931 37 00
--
Bis[(5-ethyl-2-methyl-2-oxido-1, 3, 2-dioxaphosphinan-5-yl)
methyl] methylphosphonate
kg.
10%
-
2931 38 00
--
Salt of methylphosphonic acid and (aminoiminomethyl)urea (1: 1)
kg.
10%
-
2931 39 00
--
Other
kg.
10%
- ”;
(xvi) after tariff item 2932 13 00 and the entries relating thereto, the following shall be inserted, namely:—
“2932 14 00
--
Sucralose
kg.
10%
- ”;
30
35
40
103
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
Rate of Duty
Standard Preferential
(4)
(5)
(xvii) after tariff item 2933 91 00 and the entries relating thereto, the following shall be inserted, namely:—
5
“2933 92 00
--
Azinphos-methyl (ISO)
kg.
10%
- ”;
(xviii) for heading 2935, sub-heading 2935 00, tariff items 2935 00 11 to 2935 00 90 and the entries relating thereto, the
following shall be substituted, namely:—
“2935
SULPHONAMIDES
2935 10 00
-
N-Methylperfluorooctane sulphonamide
kg.
10%
-
10 2935 20 00
-
N-Ethylperfluorooctane sulphonamide
kg.
10%
-
2935 30 00
-
N-Ethyl-N-(2-hydroxyethyl) perfluorooctane sulphonamide
kg.
10%
-
2935 40 00
-
N-(2-Hydroxyethyl)-N-methylperfluorooctane sulphonamide
kg.
10%
-
2935 50 00
-
Other perfluorooctane sulphonamides
kg.
10%
-
2935 90
-
Other:
15
---
Sulphamethoxazole, sulphafurazole, sulphadiazine,
sulphadimidine, sulphacetamide:
2935 90 11
----
Sulphamethoxazole
kg.
10%
-
2935 90 12
----
Sulphafurazole
kg.
10%
-
2935 90 13
----
Sulphadiazine
kg.
10%
-
20 2935 90 14
----
Sulphadimidine
kg.
10%
-
2935 90 15
----
Sulphacetamide
kg.
10%
-
---
Sulphamethoxypyridarine, sulphamethiazole, sulphamoxole,
sulphamide:
2935 90 21
----
Sulphamethoxypyridarine
kg.
10%
-
25 2935 90 22
----
Sulphamethiazole
kg.
10%
-
2935 90 23
----
Sulphamoxole
kg.
10%
-
2935 90 24
----
Sulphamide
kg.
10%
-
2935 90 90
---
Other
kg.
10%
- ”;
(xix) for the tariff item 2937 31 00 and the entries relating thereto, the following shall be substituted, namely:—
30 “2937 31 00
--
Epinephrine
kg.
10%
10% “;
(xx) in the entry under column (2) occurring after tariff item 2937 90 90 and the entries relating thereto, the word “VEGETABLE”
shall be omitted;
(xxi) for heading 2939 and the entries relating thereto, the following shall be substituted, namely:—
“2939
ALKALOIDS, NATURAL OR REPRODUCED BY SYNTHESIS,
AND THEIR SALTS, ETHERS, ESTERS AND OTHER
DERIVATIVES”;
35
(xxii) for tariff items 2939 69 00 to 2939 99 00 and the entries relating thereto, the following shall be substituted, namely:—
“2939 69 00
40
--
Other
kg.
10%
-
-
Other, of vegetal origin:
2939 71 00
--
Cocaine, ecgonine, levometamfetamine, metamfetamine (INN),
metamfetamine racemate; salts, esters and other derivatives
thereof
kg.
10%
-
2939 79 00
--
Other
kg.
10%
-
104
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
2939 80 00
-
Other
Rate of Duty
Standard Preferential
kg.
(4)
10%
(5)
- ”;
(15) in Chapter 30,—
5
(i) after Note 4, the following shall be inserted, namely:—
“Sub-heading Notes:
1.
For the purposes of sub-headings 3002 13 and 3002 14, the following are to be treated:
(a) as unmixed products, pure products, whether or not containing impurities;
(b) as products which have been mixed:
10
(1) the products mentioned in (a) above dissolved in water or in other solvents;
(2) the products mentioned in (a) and (b) (1) above with an added stabiliser necessary for their preservation or
transport; and
(3) the products mentioned in (a), (b) (1) and (b) (2) above with any other additive.
2. Sub-headings 3003 60 and 3004 60 cover medicaments containing artemisinin (INN) for oral ingestion combined 15
with other pharmaceutical active ingredients, or containing any of the following active principles, whether or not
combined with other pharmaceutical active ingredients: amodiaquine (INN); artelinic acid or its salts; artenimol (INN);
artemotil (INN); artemether (INN); artesunate (INN); chloroquine (INN); dihydroartemisinin (INN); lumefantrine (INN);
mefloquine (INN); piperaquine (INN); pyrimethamine (INN) or sulfadoxine (INN).”;
(ii) for sub-heading 3002 10, tariff items 3002 10 11 to 3002 10 99 and the entries relating thereto, the following shall be 20
substituted, namely:—
“-
Antisera, other blood fractions and immunological products,
whether or not modified or obtained by biotechnological
processes:
3002 11 00
--
Malaria diagnostic test kits
3002 12
--
Antisera and other blood fractions:
3002 12 10
---
3002 12 20
kg.
10%
10%
For diphtheria
kg.
10%
10%
---
For tetanus
kg.
10%
10%
3002 12 30
---
For rabies
kg.
10%
10%
3002 12 40
---
For snake venom
kg.
10%
10%
3002 12 90
---
Other
kg.
10%
10%
3002 13
--
Immunological products, unmixed, not put up in measured
doses or in forms or packings for retail sale:
3002 13 10
---
Immunological products, unmixed, not put up in measured
doses or in forms or packings for retail sale
kg.
10%
10%
25
30
35
3002 14
--
Immunological products, mixed, not put up in measured doses
or in forms or packings for retail sale:
3002 14 10
---
Immunological products, mixed, not put up in measured doses
or in forms or packings for retail sale
kg.
10%
10%
3002 15 00
--
Immunological products, put up in measured doses or in forms
or packings for retail sale
kg.
10%
10%
3002 19 00
--
Other
kg.
10%
10%”;
40
(iii) for tariff items 3003 20 00 to 3003 40 00 and the entries relating thereto, the following shall be substituted, namely:—
“3003 20 00
3003 31 00
-
Other, containing antibiotics
-
Other, containing hormones or other products of heading 2937:
--
Containing insulin
kg.
10%
10%
45
kg.
10%
10%
105
Tariff Item
(1)
3003 39 00
Description of goods
(2)
(5)
10%
kg.
10%
10%
Containing pseudoephedrine (INN) or its salts
kg.
10%
10%
--
Containing norephedrine or its salts
kg.
10%
10%
--
Other
kg.
10%
10%
-
Other, containing antimalarial active principles described in
Sub-heading Note 2 to this Chapter
kg.
10%
10%”;
Other
-
Other, containing alkaloids or derivatives thereof:
3003 41 00
--
Containing ephedrine or its salts
3003 42 00
--
3003 43 00
3003 49 00
10 3003 60 00
(3)
kg.
Rate of Duty
Standard Preferential
(4)
10%
--
5
Unit
(iv) in heading 3004,—
(a) for sub-heading 3004 20 and the entries relating thereto, the following shall be substituted, namely:—
“3004 20
15
Other, containing antibiotics:”;
(b) for tariff item 3004 20 99, sub-heading 3004 31 and the entries relating thereto, the following shall be substituted,
namely:—
“3004 20 99
3004 31
20
--
----
Other
-
Other, containing hormones and other products of heading 2937:
--
Containing insulin:”;
kg.
10%
10%
(c) for sub-heading 3004 40, tariff items 3004 40 10 to 3004 40 90 and the entries relating thereto, the following shall be
substituted, namely:—
“-
Other, containing alkaloids or derivatives thereof:
3004 41 00
--
Containing ephedrine or its salts
kg.
10%
10%
3004 42 00
--
Containing pseudoephedrine (INN) or its salts
kg.
10%
10%
25 3004 43 00
--
Containing norephedrine or its salts
kg.
10%
10%
3004 49
--
Other:
3004 49 10
---
Atropin and salts thereof
kg.
10%
10%
3004 49 20
---
Caffein and salts thereof
kg.
10%
10%
3004 49 30
---
Codeine and derivatives, with or without ephidrine hydrochloride
kg.
10%
10%
30 3004 49 40
---
Ergot preparations, ergotamine and salts thereof
kg.
10%
10%
3004 49 50
---
Papavarine hydrochloride
kg.
10%
10%
3004 49 60
---
Bromohexin and solbutamol
kg.
10%
10%
3004 49 70
---
Theophylline and salts thereof
kg.
10%
10%
3004 49 90
---
Other
kg.
10%
10%”;
35
(d) for sub-heading 3004 50 and the entries relating thereto, the following shall be substituted, namely:—
“3004 50
-
Other, containing vitamins or other products of heading 2936:”;
(e) after tariff item 3004 50 90 and the entries relating thereto, the following shall be inserted, namely:—
“3004 60 00
40
-
Other, containing antimalarial active principles described in
Sub-heading Note 2 to this Chapter
kg.
10%
10% ”;
(16) in Chapter 31, in heading 3103, for tariff item 3103 10 00 and the entries relating thereto, the following shall be substituted,
namely:—
“-
Superphosphates:
106
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
3103 11 00
3103 19 00
---
Containing by weight 35 % or more of diphosphorus pentaoxide
(P2O5)
kg.
Other
kg.
Rate of Duty
Standard Preferential
(4)
10%
(5)
5
10%
- ”;
(17) in Chapter 37, in heading 3705, for tariff item 3705 10 00, sub-heading 3705 90, tariff items 3705 90 10 and 3705 90 90
and the entries relating thereto, the following shall be substituted, namely:—
“3705 00 00
-
PHOTOGRAPHIC PLATES AND FILM, EXPOSED AND
DEVELOPED, OTHER THAN CINEMATOGRAPHIC FILM
kg.
10%
- ”;
10
(18) in Chapter 38,—
(i) for Sub-heading Notes 1 and 2, the following shall be substituted, namely:—
‘ Sub-heading Notes:
1. Sub-headings 3808 52 and 3808 59 cover only goods of heading 3808, containing one or more of the following
substances: alachlor (ISO); aldicarb (ISO); aldrin (ISO); azinphos-methyl (ISO); binapacryl (ISO); camphechlor (ISO) 15
(toxaphene); captafol (ISO); chlordane (ISO); chlordimeform (ISO); chlorobenzilate (ISO); DDT (ISO) (clofenotane (INN),
1, 1, 1-trichloro-2, 2-bis(p-chlorophenyl)ethane); dieldrin (ISO, INN); 4, 6- dinitro-o-cresol (DNOC (ISO)) or its salts;
dinoseb (ISO), its salts or its esters; endosulfan (ISO); ethylene dibromide (ISO) (1, 2-dibromoethane); ethylene dichloride
(ISO) (1, 2-dichloroethane); fluoroacetamide (ISO); heptachlor (ISO); hexachlorobenzene (ISO); 1, 2, 3, 4, 5, 6hexachlorocyclohexane (HCH (ISO)), including lindane (ISO, INN); mercury compounds; methamidophos (ISO); 20
monocrotophos (ISO); oxirane (ethylene oxide); parathion (ISO); parathion-methyl (ISO) (methylparathion); penta- and
octabromodiphenyl ethers; pentachlorophenol (ISO), its salts or its esters; perfluorooctane sulphonic acid and its salts;
perfluorooctane sulphonamides; perfluorooctane sulphonyl fluoride; phosphamidon (ISO); 2, 4, 5-T (ISO) (2, 4, 5trichlorophenoxyacetic acid), its salts or its esters; tributyltin compounds.
Sub-heading 3808 59 also covers dustable powder formulations containing a mixture of benomyl (ISO), carbofuran 25
(ISO) and thiram (ISO).
2. Sub-headings 3808 61 to 3808 69 cover only goods of heading 3808, containing alpha-cypermethrin (ISO),
bendiocarb (ISO), bifenthrin (ISO), chlorfenapyr (ISO), cyfluthrin (ISO), deltamethrin (INN, ISO), etofenprox (INN),
fenitrothion (ISO), lambda-cyhalothrin (ISO), malathion (ISO), pirimiphos-methyl (ISO) or propoxur (ISO).
3. Sub-headings 3824 81 to 3824 88 cover only mixtures and preparations containing one or more of the following 30
substances: oxirane (ethylene oxide), polybrominated biphenyls (PBBs), polychlorinated biphenyls (PCBs),
polychlorinated terphenyls (PCTs), tris(2, 3-dibromopropyl) phosphate, aldrin (ISO), camphechlor (ISO) (toxaphene),
chlordane (ISO), chlordecone (ISO), DDT (ISO) (clofenotane (INN), 1, 1, 1-trichloro-2, 2-bis(pchlorophenyl)ethane),
dieldrin (ISO, INN), endosulfan (ISO), endrin (ISO), heptachlor (ISO), mirex (ISO), 1, 2, 3, 4, 5, 6-hexachlorocyclohexane
(HCH (ISO)), including lindane (ISO, INN), pentachlorobenzene (ISO), hexachlorobenzene (ISO), perfluorooctane 35
sulphonic acid, its salts, perfluorooctane sulphonamides, perfluorooctane sulphonyl fluoride or tetra-, penta-, hexa-,
hepta- or octabromodiphenyl ethers.
4. For the purposes of tariff items 3825 41 00 and 3825 49 00, “waste organic solvents”are wastes containing mainly
organic solvents, not fit for further use as presented as primary products, whether or not intended for recovery of
40
solvents.’;
(ii) for sub-heading 3808 50 and tariff item 3808 50 00 and the entries relating thereto, the following shall be substituted,
namely:—
“-
Goods specified in Sub-heading Note 1 to this Chapter:
--
DDT (ISO) (clofenotane (INN)), in packings of a net weight
content not exceeding 300 g
kg.
--
Other
kg.
10%
-
-
Goods specified in Sub-heading Note 2 to this Chapter:
3808 61 00
--
In packings of a net weight content
not exceeding 300 g
kg.
10%
-
3808 62 00
--
In packings of a net weight content exceeding 300 g but not
exceeding 7.5 kg
kg.
10%
-
3808 52 00
3808 59 00
10%
45
50
107
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
3808 69 00
5
Other
kg.
(4)
10%
(5)
-”;
(iii) for sub-heading 3812 30 and tariff items 3812 30 10 to 3812 30 90 and the entries relating thereto, the following shall
be substituted, namely:—
“-
Anti-oxidising preparations and other compound stabilizers for
rubber or plastics:
--
Mixtures of oligomers of 2, 2, 4-trimethyl-1, 2-dihydroquinoline (TMQ)
--
Other:
3812 39 10
---
3812 39 20
3812 31 00
kg.
10%
-
Anti-oxidants for rubber
kg.
10%
-
---
Softeners for rubber
kg.
10%
-
3812 39 30
---
Vulcanizing agents for rubber
kg.
10%
-
3812 39 90
---
Other
kg.
10%
-”;
10 3812 39
15
--
Rate of Duty
Standard Preferential
(iv) for tariff items 3824 79 00 to 3824 83 00, sub-heading 3824 90, tariff items 3824 90 11 to 3824 90 90 and the entries
relating thereto, the following shall be substituted, namely:—
“3824 79 00
--
Other
kg.
10%
-
-
Goods specified in Sub-heading Note 3 to this Chapter:
3824 81 00
--
Containing oxirane (ethylene oxide)
kg.
10%
-
20 3824 82 00
--
Containing polychlorinated biphenyls (PCBs), polychlorinated
terphenyls (PCTs) or polybrominated biphenyls (PBBs)
kg.
10%
-
3824 83 00
--
Containing tris(2, 3-dibromopropyl) phosphate
kg.
10%
-
3824 84 00
--
Containing aldrin (ISO), camphechlor (ISO) (toxaphene),
chlordane (ISO), chlordecone (ISO), DDT (ISO) (clofenotane
(INN), 1, 1, 1- trichloro-2, 2-bis(p-chlorophenyl)ethane), dieldrin
(ISO, INN), endosulfan (ISO), endrin (ISO), heptachlor (ISO)
or mirex (ISO)
kg.
10%
-
3824 85 00
--
Containing 1, 2, 3, 4, 5, 6-hexachlorocyclohexane (HCH (ISO)),
including lindane (ISO, INN)
kg.
10%
-
30 3824 86 00
--
Containing pentachlorobenzene (ISO) or hexachlorobenzene (ISO)
kg.
10%
-
3824 87 00
--
Containing perfluorooctane sulphonic acid, its salts,
perfluorooctane sulphonamides, or perfluorooctane sulphonyl
fluoride
kg.
10%
-
3824 88 00
--
Containing tetra-, penta-, hexa- hepta- or octabromodiphenyl ethers
kg.
10%
-
35 3824 91 00
--
Mixtures and preparations consisting mainly of (5-ethyl-2-methyl-2oxido-1, 3, 2-dioxaphosphinan-5-yl)methyl methyl
methylphosphonate and bis[(5-ethyl-2-methyl-2-oxido-1, 3, 2dioxaphosphinan-5-yl) methyl] methylphosphonate:
3824 99
--
Other:
40
---
Ammoniacal gas liquors and spent oxide produced in coal gas
purification, case hardening compound, heat transfer salts;
mixture of diphenyl and diphenyl oxide as heat transfer medium,
mixed polyethylene glycols; salts for curing or salting, surface
tension reducing agents:
45 3824 99 11
----
Ammoniacal gas liquors and spent oxide produced in coal
gas purification
kg.
10%
-
3824 99 12
----
Case hardening compound
kg.
10%
-
3824 99 13
----
Heat transfer salts
kg.
10%
-
25
108
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
Rate of Duty
Standard Preferential
(4)
(5)
3824 99 14
----
Mixture of diphenyl and diphenyl oxide as heat transfer medium kg.
10%
-
3824 99 15
----
Mixed polyethylene glycols
kg.
10%
-
3824 99 16
----
Salts for curing or salting
kg.
10%
-
3824 99 17
----
Surface tension reducing agents
kg.
10%
-
---
Electroplating salts; water treatment chemicals; ion exchanger,
correcting fluid; precipitated silica and silica gel; oil well chemical:
3824 99 21
----
Electroplating salts
kg.
10%
-
3824 99 22
----
Water treatment chemicals; ion exchanger (INN) such as
permiutits, zero-lites
kg.
10%
-
3824 99 23
----
Gramaphone records making material
kg.
10%
-
3824 99 24
----
Correcting fluid
kg.
10%
-
3824 99 25
----
Precipitated silica and silica gel
kg.
10%
-
3824 99 26
----
Oil well chemical
kg.
10%
-
---
Mixture containing perhalogenated derivatives of acyclic
hydrocarbons containing two or more different halogens other
than chlorine and fluorine; ferrite powder; capacitor fluids - PCB
type; dipping oil for treatment of grapes; Poly brominated
biphenyls, poly chlorinated biphenyls, Poly chlorinated
terphenyls, crocidolite; goods of a kind known as “hazardous
waste”; phosphogypsum:
3824 99 31
----
Mixture containing perhalogenated derivatives of acyclic
hydrocarbons containing two or more different halogens other
than chlorine and fluorine
kg.
10%
15
25
----
Ferrite powder
kg.
10%
-
3824 99 33
----
Capacitor fluids - PCB type
kg.
10%
-
3824 99 34
----
Dipping oil for treatment of grapes
kg.
10%
-
3824 99 35
----
Poly brominated biphenyls, poly chlorinated biphenyls,
Poly chlorinated terphenyls, crocidolite
kg.
10%
-
3824 99 36
----
Goods of a kind known as “hazardous waste”
kg.
10%
-
3824 99 37
----
Phosphogypsum
kg.
10%
-
3824 99 38
----
Phosphonic Acid, Methyl-compound with (aminoimino methyl)
urea (1: 1)
kg.
10%
-
Other
kg.
---
10
20
3824 99 32
3824 99 90
5
30
35
10%
-”;
(19) in Chapter 39,—
(i) in Note 2, in clause (z), after the words “propelling pencils”, the words “, and monopods, bipods, tripods and similar
articles” shall be inserted;
(ii) in Sub-heading Note 1, in clause (a), in sub-clause (2), after the figures “3901 30,”, the figures “3901 40,” shall be
inserted;
40
(iii) in heading 3901, after tariff item 3901 30 00 and the entries relating thereto, the following shall be inserted, namely:—
“3901 40 00
-
Ethylene-alpha-olefin copolymers, having a specific gravity of
less than 0.94
kg.
10%
-”;
(iv) in heading 3907, for sub-heading 3907 60 and tariff items 3907 60 10 to 3907 60 90 and the entries relating thereto, the
following shall be substituted, namely:—
“-
Poly(ethylene terephthalate):
45
109
Tariff Item
Description of goods
Unit
(1)
3907 61 00
--
(2)
Having a viscosity number of 78 ml/g or higher
3907 69
--
Other:
3907 69 10
---
Having a viscosity number less than 78 ml/g but not less than
72 ml/g
kg.
10%
-
3907 69 20
---
Having a viscosity number less than 72 ml/g but not less than
64 ml/g
kg.
10%
-
10 3907 69 90
---
Other
kg.
10%
- ”;
5
(3)
kg.
Rate of Duty
Standard Preferential
(4)
10%
(5)
-
(v) for sub-heading 3909 30 and tariff items 3909 30 10 to 3909 30 90 and the entries relating thereto, the following shall be
substituted, namely:—
“-
Other amino-resins:
--
Poly(methylene phenyl isocyanate) (crude MDI, polymeric MDI)
--
Other:
3909 39 10
---
3909 39 90
---
3909 31 00
15 3909 39
kg.
10%
-
Poly(phenylene oxide)
kg.
10%
-
Other
kg.
10%
-”;
(20) in Chapter 40, in heading 4011, for tariff items 4011 50 90 to 4011 99 00 and the entries relating thereto, the following
shall be substituted, namely:—
20 “4011 50 90
25
---
Other
u
10%
-
4011 70 00
-
Of a kind used on agricultural or forestry vehicles and machines
u
10%
-
4011 80 00
-
Of a kind used on construction, mining or industrial handling
vehicles and machines
u
10%
-
4011 90 00
-
Other
u
10%
-”;
(21) in Chapter 42,—
(i) in heading 4202,—
(a) for sub-heading 4202 22 and the entries relating thereto, the following shall be substituted, namely:—
“4202 22
--
With outer surface of sheeting of plastics or of textile materials: ”;
(b) for sub-heading 4202 32 and the entries relating thereto, the following shall be substituted, namely:—
30 “4202 32
--
With outer surface of sheeting of plastics or of textile materials: ”;
(c) for tariff item 4202 92 00 and the entries relating thereto, the following shall be substituted, namely:—
“4202 92 00
--
With outer surface of sheeting of plastics or of textile materials
u
10%
-”;
(22) in Chapter 44,—
35
(i) in Note 1, in clause (q), for the word “pencils”, the words “pencils, and monopods, bipods, tripods and similar articles”
shall be substituted;
(ii) the Sub-heading Note 2 shall be omitted;
(iii) in heading 4401,—
(a) for sub-heading 4401 10, tariff items 4401 10 10, 4401 10 90 and the entries relating thereto, the following shall be
substituted, namely:—
40
“-
Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms:
4401 11
--
Coniferous:
4401 11 10
---
In logs
mt
5%
-
4401 11 90
---
Other
mt
5%
-
110
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
Rate of Duty
Standard Preferential
(4)
(5)
4401 12
--
Non-coniferous:
4401 12 10
---
In logs
mt
5%
-
4401 12 90
---
Other
mt
5%
- ”;
5
(b) for tariff items 4401 22 00 and 4401 31 00 and the entries relating thereto, the following shall be substituted,
namely:—
“4401 22 00
4401 31 00
--
Non-coniferous
mt
-
Sawdust and wood waste and scrap, agglomerated, in logs, briquettes, pellets or similar forms:
--
Wood pellets
mt
5%
5%
10
- ”;
(c) after tariff item 4401 39 00 and the entries relating thereto, the following shall be inserted, namely:—
“4401 40 00
-
Sawdust and wood waste and scrap, not agglomerated
mt
5%
- ”;
(iv) in heading 4403,—
(a) for tariff item 4403 10 00, sub-heading 4403 20 and tariff items 4403 20 10 to 4403 41 00 and the entries relating 15
thereto, the following shall be substituted, namely:—
“-
Treated with paint, stains, creosote or other preservatives:
4403 11 00
--
Coniferous
m3
5%
-
4403 12 00
--
Non-coniferous
m3
5%
-
-
Other, coniferous:
4403 21
--
Of pine (Pinus spp.), of which any cross-sectional dimension
is 15 cm or more:
4403 21 10
---
Saw logs and veneer logs
20
m3
5%
-
3
5%
-
4403 21 20
---
Poles, pilings and posts
m
4403 21 90
---
Other
m3
5%
-
4403 22
--
Of pine (Pinus spp.), other:
4403 22 10
---
Saw logs and veneer logs
m3
5%
-
4403 22 20
---
Poles, pilings and posts
m3
5%
-
3
5%
-
4403 22 90
---
Other
4403 23
--
Of fir (Abies spp.) and spruce (Picea spp.), of which any
cross-sectional dimension is 15 cm or more:
4403 23 10
---
Saw logs and veneer logs
m
30
m3
5%
-
3
5%
-
5%
-
4403 23 20
---
Poles, pilings and posts
m
4403 23 90
---
Other
m3
4403 24
--
Of fir (Abies spp.) and spruce (Picea spp.), other:
4403 24 10
---
Saw logs and veneer logs
m3
5%
-
4403 24 20
---
Poles, pilings and posts
m3
5%
-
4403 24 90
---
Other
m3
5%
-
4403 25
--
Other, of which any cross-sectional dimension is 15 cm or more:
4403 25 10
---
Saw logs and veneer logs
m3
5%
-
4403 25 20
---
Poles, pilings and posts
m3
5%
-
3
5%
-
4403 25 90
---
Other
25
35
m
40
111
5
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
(4)
(5)
4403 26
--
Other:
4403 26 10
---
Saw logs and veneer logs
m3
5%
-
4403 26 20
---
Poles, pilings and posts
m3
5%
-
4403 26 90
---
Other
m3
5%
-
-
Other, of tropical wood:
m3
5%
- ”;
4403 41 00
10
Rate of Duty
Standard Preferential
--
Dark red meranti, light red meranti and meranti bakau
(b) for tariff item 4403 92 00 and the entries relating thereto, the following shall be substituted, namely:—
“4403 93 00
--
Of beech (Fagus spp.), of which any cross-sectional dimension
is 15 cm or more
m3
5%
-
4403 94 00
--
Of beech (Fagus spp.), other
m3
5%
-
3
5%
-
4403 95 00
--
Of birch (Betula spp.), of which any cross-sectional dimension
is 15 cm or more
m
4403 96 00
--
Of birch (Betula spp.), other
m3
5%
-
4403 97 00
--
Of poplar and aspen (Populus spp.)
m3
5%
-
3
5%
- ”;
15
4403 98 00
--
Of eucalyptus (Eucalyptus spp.)
m
(c) for tariff item 4403 99 19 to 4403 99 21 and the entries relating thereto, the following shall be substituted, namely:—
20
25
“4403 99 19
4403 99 21
----
Rose Wood (Dalbergea Latifolio )
---
Sal (Chorea robusta, Sandalwood (Santalum album), Semul
(Bombax ceiba), Walnut wood (Juglans binata), Anjam
(Hardwickia binata), Sisso (Dalbergia sisso) and White cedar
(Dysozylum spp) and the like:
----
Sal (Chorea robusta)
m3
5%
-
m3
5%
- ”;
(d) the tariff item 4403 99 26 and the entries relating thereto shall be omitted;
(e) for tariff item 4403 99 29 and the entries relating thereto, the following shall be substituted, namely:—
“4403 99 90
30
---
m3
5%
- ”;
(v) in heading 4406, for tariff items 4406 10 00 and 4406 90 00 and the entries relating thereto, the following shall be
substituted, namely:—
“-
Not impregnated:
4406 11 00
--
Coniferous
kg.
10%
-
4406 12 00
--
Non-coniferous
kg.
10%
-
35
Other
Other:
4406 91 00
--
Coniferous
kg.
10%
-
4406 92 00
--
Non-coniferous
kg.
10%
- ”;
(vi) in heading 4407,—
(a) for sub-heading 4407 10, tariff items 4407 10 10 to 4407 21 00 and the entries relating thereto, the following shall
be substituted, namely:—
“-
Coniferous:
4407 11 00
--
Of pine (Pinus spp.)
m3
10%
-
4407 12 00
--
Of fir (Abies spp.) and Spruce ( Picea spp.)
m3
10%
-
4407 19
--
Other:
40
112
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
Rate of Duty
Standard Preferential
(4)
(5)
3
10%
-
4407 19 10
---
Douglas fir (Pseudotsuga menziesii)
m
4407 19 90
---
Other
m3
10%
-
-
Of tropical wood:
--
Mahogany (Swietenia spp.)
m3
10%
-”;
4407 21 00
5
(b) after tariff item 4407 95 00 and the entries relating thereto, the following shall be inserted, namely:—
“4407 96 00
--
Of birch (Betula spp.)
m3
10%
-
4407 97 00
--
Of poplar and aspen (Populus spp.)
m3
10%
-”;
10
(c) tariff item 4407 99 10 and the entries relating thereto shall be omitted;
(vii) in heading 4408,—
(a) for tariff item 4408 10 90 to sub-heading 4408 31, and the entries relating thereto, the following shall be substituted,
namely:—
“4408 10 90
4408 31
---
Other
-
Of tropical wood:
--
Of Dark red meranti, Light red meranti, Meranti bakau:”;
kg.
10%
-
15
(b) after tariff item 4409 21 00 and the entries relating thereto, the following shall be inserted, namely:—
“4409 22 00
--
Of tropical wood
kg.
10%
-”;
(viii) in heading 4412,—
20
(a) for sub-heading 4412 31 and the entries relating thereto, the following shall be substituted, namely:—
“4412 31
--
With at least one outer ply of tropical wood:”;
(b) for sub-heading 4412 32, tariff items 4412 32 10 to 4412 32 90, sub-heading 4412 39, tariff items 4412 39 10 to
4412 39 90 and the entries relating thereto, the following shall be substituted, namely:—
“4412 33
--
Other, with at least one outer ply of non-coniferous wood of
the species alder (Alnus spp.), ash (Fraxinus spp.), beech
(Fagus spp.), birch (Betula spp.), cherry (Prunus spp.), chestnut
(Castanea spp.), elm (Ulmus spp.), eucalyptus (Eucalyptus
spp.), hickory (Carya spp.), horse chestnut (Aesculus spp.),
lime (Tilia spp.), maple (Acer spp.), oak (Quercus spp.), plane
tree (Platanus spp.), poplar and aspen (Populus spp.), robinia
(Robinia spp.), tulipwood (Liriodendron spp.) or walnut
(Juglans spp.):
25
30
4412 33 10
---
Decorative plywood
m3
10%
-
4412 33 20
---
Tea chest panels, shooks whether or not packed in sets
m3
10%
-
4412 33 30
---
Marine and aircraft plywood
m3
10%
-
4412 33 40
---
Cutting and trimmings of plywood of width not exceeding 5 cm
m3
10%
-
m
3
10%
-
m
3
10%
-
3
10%
-
4412 33 90
---
Other
4412 34
--
Other, with at least one outer ply of non-coniferous wood not
specified under sub-heading 4412 33:
4412 34 10
---
Decorative plywood
35
40
4412 34 20
---
Tea chest panels, shooks whether or not packed in sets
m
4412 34 30
---
Marine and aircraft plywood
m3
10%
-
3
10%
-
10%
-
4412 34 40
---
Cutting and trimmings of plywood of width not exceeding 5 cm
m
4412 34 90
---
Other
m3
45
113
Tariff Item
5
10
Description of goods
Unit
(3)
Rate of Duty
Standard Preferential
(1)
4412 39
--
(2)
Other, with both outer plies of coniferous wood:
4412 39 10
---
Decorative plywood
m3
10%
-
4412 39 20
---
Tea chest panels, shooks whether or not packed in sets
m3
10%
-
4412 39 30
---
Marine and aircraft plywood
m3
10%
-
3
10%
-
10%
- ”;
4412 39 40
---
Cutting and trimmings of plywood of width not exceeding 5 cm
m
4412 39 90
---
Other
m3
(4)
(5)
(ix) in heading 4418, for tariff items 4418 71 00 to 4418 90 00 and the entries relating thereto, the following shall be
substituted, namely:—
“-
Assembled flooring panels:
4418 73 00
--
Of bamboo or with at least the top layer (wear layer) of bamboo
kg.
10%
-
4418 74 00
--
Other, for mosaic floors
kg.
10%
-
15 4418 75 00
--
Other, multilayer
kg.
10%
-
4418 79 00
--
Other
kg.
10%
-
-
Other:
4418 91 00
--
Of bamboo
kg.
10%
-
4418 99 00
--
Other
kg.
10%
-”;
20
(x) for heading 4419, sub-heading 4419 00, tariff items 4419 00 10 and 4419 00 20 and the entries relating thereto, the
following shall be substituted, namely:—
“4419
TABLEWARE AND KITCHENWARE, OF WOOD
-
Of bamboo:
4419 11 00
--
Bread boards, chopping boards and similar boards
kg.
10%
-
25 4419 12 00
--
Chopsticks
kg.
10%
-
4419 19 00
--
Other
kg.
10%
-
-
Other:
4419 90
4419 90 10
---
Bread boards, chopping boards and similar boards
kg.
10%
-
4419 90 20
---
Chopsticks
kg.
10%
-
30 4419 90 90
---
Other
kg.
10%
-”;
(xi) in heading 4421, for sub-heading 4421 90, tariff items 4421 90 11 to 4421 90 90 and the entries relating thereto, the
following shall be substituted, namely:—
“-
Other:
--
Of bamboo:
---
Spools, cops, bobbins, sewing thread reels and the like of
turned wood:
4421 91 11
----
For cotton machinery
kg.
10%
-
4422 91 12
----
For jute machinery
kg.
10%
-
4423 91 13
----
For silk regenerated and synthetic fibre machinery
kg.
10%
-
4424 91 14
----
For other machinery
kg.
10%
-
4421 91 19
----
Other
kg.
10%
-
4421 91 20
---
Wood Paving Blocks
kg.
10%
-
4421 91 30
---
Match splints
kg.
10%
-
4421 91
35
40
114
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
Rate of Duty
Standard Preferential
(4)
(5)
4421 91 40
---
Pencil slats
kg.
10%
-
4421 91 50
---
Parts of wood, namely oars, paddles and rudders for ships,
boats and other similarfloating structures
kg.
10%
-
4421 91 60
---
Parts of domestic decorative articles used as tableware and
kitchenware
kg.
10%
-
4421 91 70
---
Articles of densified wood not included or specified elsewhere
kg.
10%
-
4421 91 90
---
Other
kg.
10%
-
4421 99
--
Other:
---
Spools, cops, bobbins, sewing thread reels and the like of
turned wood:
4421 99 11
----
For cotton machinery
kg.
10%
-
4421 99 12
----
For jute machinery
kg.
10%
-
4421 99 13
----
For silk regenerated and synthetic fibre machinery
kg.
10%
-
4421 99 14
----
For other machinery
kg.
10%
-
4421 99 19
----
Other
kg.
10%
-
4421 99 20
---
Wood Paving Blocks
kg.
10%
-
4421 99 30
---
Match splints
kg.
10%
-
4421 99 40
---
Pencil slats
kg.
10%
-
4421 99 50
---
Parts of wood, namely oars, paddles and rudders for ships,
boats and other similarfloating structures
kg.
10%
-
4421 99 60
---
Parts of domestic decorative articles used as tableware and
kitchenware
kg.
10%
-
5
10
-
15
20
25
4421 99 70
---
Articles of densified wood not included or specified elsewhere
kg.
10%
-
4421 99 90
---
Other
kg.
10%
-”;
(23) in Chapter 48,—
(i) in Note 4, after the words, figures and letters “more than 65 g/m²”, the words, brackets, figures and letters”, and apply
only to paper: (a) in strips or rolls of a width exceeding 28 cm; or (b) in rectangular (including square) sheets with one side
exceeding 28 cm and the other side exceeding 15 cm in the unfolded state” shall be inserted;
30
(ii) in Note 8, the figures and word “4801, and”shall be omitted;
(24) in Chapter 54,—
(i) in heading 5402, for the entry in column (2) occurring after the entry against the heading 5402, the following entry shall
be substituted, namely:—
“-
35
High tenacity yarn of nylon or other polyamides, whether or not textured:”;
(ii) for sub-heading 5402 20 and the entries relating thereto, the following shall be substituted, namely:—
“5402 20
--
High tenacity yarn of polyesters, whether or not textured: “;
(iii) after tariff item 5402 52 00 and the entries relating thereto, the following shall be inserted, namely:—
“5402 53 00
--
Of polypropylene
kg.
10%
-”;
40
(iv) after tariff item 5402 62 00 and the entries relating thereto, the following shall be inserted, namely:—
“5402 63 00
--
Of polypropylene
kg.
10%
-”;
(25) in Chapter 55,—
(i) for heading 5502, sub-heading 5502 00, tariff items 5502 10 00 to 5502 90 00 and the entries relating thereto, the
following shall be substituted, namely:—
45
115
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
“5502
Rate of Duty
Standard Preferential
(4)
(5)
ARTIFICIAL FILAMENT TOW
5 5502 10
--
Of cellulose acetate:
5502 10 10
---
Viscose rayon tow
kg.
10%
-
5502 10 90
---
Other
kg.
10%
-
5502 90
--
Other:
5502 90 10
---
Viscose rayon tow
kg.
10%
-
10 5502 90 90
---
Other
kg.
10%
-”;
(ii) after tariff item 5506 30 00 and the entries relating thereto, the following shall be inserted, namely:—
“5506 40 00
-
Of polypropylene
kg.
10%
-”;
(26) in Chapter 56, for heading 5601, sub-heading 5601 21 and the entries relating thereto, the following shall be substituted,
namely:—
15 “5601
WADDING OF TEXTILE MATERIALS AND ARTICLES THEREOF;
TEXTILE FIBRES, NOT EXCEEDING 5 MM IN LENGTH
(FLOCK), TEXTILE DUST AND MILL NEPS
5601 21
20
-
Wadding of textile materials and articles thereof:
--
Of cotton:”;
(27) in Chapter 57, in heading 5704, after tariff item 5704 10 00 and the entries relating thereto, the following shall be inserted,
namely:—
“5704 20
-
Tiles, having a maximum surface area exceeding 0.3 m² but
not exceeding 1 m²:
5704 20 10
---
Cotton
m2
10% or
Rs.35 per
sq. metre,
whichever
is higher
-
5704 20 20
---
Woollen, other than artware
m2
10% or
Rs.35 per
sq. metre,
whichever
is higher
-
5704 20 90
---
Other
m2
10% or
Rs.35 per
sq. metre,
whichever
is higher
- ”;
25
30
35
(28) in Chapter 60,—
40
(i) after Note 3, the following shall be inserted, namely:—
“Sub-heading Note:
45
Sub-heading 6005 35 covers fabrics of polyethylene monofilament or of polyester multifilament, weighing not less
than 30 g/m2 and not more than 55 g/m2 , having a mesh size of not less than 20 holes/cm2 and not more than 100 holes/
cm2 , and impregnated or coated with alpha-cypermethrin (ISO), chlorfenapyr (ISO), deltamethrin (INN, ISO), lambdacyhalothrin (ISO), permethrin (ISO) or pirimiphos-methyl (ISO).” ;
(ii) for tariff items 6005 31 00 to 6005 34 00 and the entries relating thereto, the following shall be substituted, namely:—
“6005 35 00
--
Fabrics specified in Sub-heading Note 1 to this Chapter
kg.
10%
-
6005 36 00
--
Other, unbleached or bleached
kg.
10%
-
116
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
Rate of Duty
Standard Preferential
(4)
(5)
6005 37 00
--
Other, dyed
kg.
10%
-
6005 38 00
--
Other, of yarns of different colours
kg.
10%
-
6005 39 00
--
Other, printed
kg.
10%
-”;
5
(29) in Chapter 63,—
(i) after Note 3, the following shall be inserted, namely:—
“Sub-heading Note:
Sub-heading 6304 20 covers articles made from fabrics, impregnated or coated with alpha-cypermethrin (ISO),
chlorfenapyr (ISO), deltamethrin (INN, ISO), lambda-cyhalothrin (ISO), permethrin (ISO) or pirimiphosmethyl (ISO).”;
10
(ii) in heading 6304, after tariff item 6304 19 90 and the entries relating thereto, the following shall be inserted, namely:—
“6304 20 00
-
Bed nets, of warp knit fabrics specified in Sub-heading Note 1
to this Chapter
u
10%
-”;
(30) in Chapter 68, in Note1, for clause (m), the following clause shall be substituted, namely:—
“(m)
15
articles of heading 9602, if made of materials specified in
Note 2 (b) to Chapter 96, or of heading 9606 (for example,
buttons), of heading 9609 (for example, slate pencils), heading
9610 (for example, drawing slates) or of heading 9620
(monopods, bipods, tripods and similar articles); or” ;
20
(31) in Chapter 69,—
(i) for heading 6907, sub-heading 6907 10, tariff items 6907 10 10 and 6907 10 90, sub-heading 6907 90, tariff items 6907
90 10 and 6907 90 90 and the entries relating thereto, the following shall be substituted, namely:—
“6907
CERAMIC FLAGS AND PAVING, HEARTH OR WALL TILES;
CERAMIC MOSAIC CUBES AND THE LIKE, WHETHER OR
NOT ON A BACKING; FINISHING CERAMICS
25
-
Flags and paving, hearth or wall tiles, other than those of
sub-headings 6907 30 and 6907 40:
6907 21 00
--
Of a water absorption coefficient by weight not exceeding 0.5%
m2
10%
-
6907 22 00
--
Of a water absorption coefficient by weight exceeding 0.5%
but not exceeding 10%
m2
10%
-
6907 23 00
--
Of a water absorption coefficient by weight exceeding 10%
m2
10%
-
6907 30
-
Mosaic cubes and the like, other than those of sub-heading 6907 40:
6907 30 10
---
Mosaic cubes and the like, other than those of sub-heading 6907 40
m2
10%
-
6907 40
-
Finishing ceramics:
6907 40 10
---
Finishing ceramics
30
35
m2
10%
-”;
(ii) the heading 6908, sub-heading 6908 10, tariff items 6908 10 10 to 6908 10 90, sub-heading 6908 90 and tariff items
6908 90 10 to 6908 90 90 and the entries relating thereto shall be omitted;
(32 ) in Section XV, in Note 1, for clause (m), the following clause shall be substituted, namely:—
“(m)
hand sieves, buttons, pens, pencil-holders, pen nibs,
monopods, bipods, tripods and similar articles or other articles
of Chapter 96 (miscellaneous manufactured articles); or”;
40
(33 ) in Chapter 74, in Note 1, for clause (c), the following clause shall be substituted, namely:—
“( c )
Master alloys
Alloys containing with other elements more than 10 per cent by
weight, of copper not usefully malleable and commonly used
as an additive in the manufacture of other alloys or as deoxidants, de-sulphuring agents or for similar uses in the
45
117
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
Rate of Duty
Standard Preferential
(4)
(5)
metallurgy of non-ferrous metals. However, copper phosphide
(phosphor copper) containing more than 15% by weight of
phosphorous falls in heading 2853.”;
5
(34) in Chapter 82, for the entry in column (2) occurring against the heading 8205, for the words “MACHINE TOOLS”, the
words “MACHINE-TOOLS OR WATER-JET CUTTING MACHINES”shall be substituted;
(35) in Chapter 83, for the entry occurring against heading 8308, the following shall be substituted, namely:—
10 “8308
CLASPS, FRAMES WITH CLASPS, BUCKLES, BUCKLECLASPS, HOOKS, EYES, EYELETS AND THE LIKE, OF
BASE METAL, OF A KIND USED FOR CLOTHING OR
CLOTHING ACCESSORIES, FOOTWEAR, JEWELLERY,
WRIST WATCHES, BOOKS, AWNINGS, LEATHER GOODS,
TRAVEL GOODS OR SADDLERY OR FOR OTHER MADE UP
ARTICLES; TUBULAR OR BIFURCATED RIVETS, OF BASE
METAL; BEADS AND SPANGLES, OF BASE METAL ”;
15
(36) in Section XVI, in Note 1, for clause (q), the following clause shall be substituted, namely:—
“(q)
20
typewriter or similar ribbons, whether or not on spools or in
cartridges (classified according to their constituent material, or
in heading 9612 if inked or otherwise prepared for giving
impressions), or monopods, bipods, tripods and similar articles,
of heading 9620.”;
(37) in Chapter 84,—
25
(i) in Note 1,—
(A) in clause (f), the word “or”shall be omitted;
(B) after clause (f), the following clause shall be inserted, namely:—
“(g) radiators for the articles of Section XVII; or”;
(C ) the existing clause (g) shall be re-lettered as (h);
30
(ii) in Note 2, in clause ( e ), for the words “machinery or plant”, the words “machinery, plant or laboratory equipment”shall
be substituted;
(iii) in Note 9, for clause (A), the following clause shall be substituted, namely:—
35
‘(A) Notes 9 (a) and 9 (b) to Chapter 85 also apply with respect to the expressions “semiconductor devices” and “electronic
integrated circuits”, respectively, as used in this Note and in heading 8486. However, for the purposes of this Note and of
heading 8486, the expression “semiconductor devices” also covers photosensitive semiconductor devices and lightemitting diodes (LED).’;
(iv) in Sub-heading Notes,—
(A) the following new Sub-heading Note 1 shall be inserted, namely:—
40
‘1. For the purposes of sub-heading 8465 20, the term “machining centres” applies only to machine-tools for working
wood, cork, bone, hard rubber, hard plastics or similar hard materials, which can carry out different types of machining
operations by automatic tool change from a magazine or the like in conformity with a machining programme.’;
(B) the existing Sub-heading Note 1 shall be re-numbered as Sub-heading Note 2 and after Sub-heading Note 2 as so
re-numbered, the following Sub-heading Note shall be inserted, namely:—
45
‘3. For the purposes of sub-heading 8481 20, the expression “valves for oleohydraulic or pneumatic transmissions”
means valves which are used specifically in the transmission of “fluid power” in a hydraulic or pneumatic system, where
the energy source is supplied in the form of pressurised fluids (liquid or gas). These valves may be of any type (for
example, pressure-reducing type, check type). Sub-heading 8481 20 takes precedence over all other sub-headings of
heading 8481.’;
(C) the existing Sub-heading Note 2 shall be re-numbered as Sub-heading Note 4 ;
50
(v) in heading 8415, for sub-heading 8415 10 and the entries relating thereto, the following shall be substituted, namely:—
118
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
‘8415 10
-
Rate of Duty
Standard Preferential
(4)
(5)
Of a kind designed to be fixed to a window, wall, ceiling or
floor, self-contained or “split-system”;’;
5
(vi) in heading 8424,—
(a) after tariff item 8424 30 00 and the entries relating thereto, the following shall be inserted, namely:—
“-
Agricultural or horticultural sprayers:
8424 41 00
--
Portable sprayers
u
7.5%
-
8424 49 00
--
Other
u
7.5%
-”;
10
(b) for tariff item 8424 81 00 and the entries relating thereto, the following shall be substituted, namely:—
“8424 82 00
--
Agricultural or horticultural
u
7.5%
-”;
(vii) in heading 8432,—
(a) for tariff item 8432 30 00 and the entries relating thereto, the following shall be substituted, namely:—
“-
15
Seeders, planters and transplanters:
8432 31 00
--
No-till direct seeders, planters and transplanters
u
7.5%
-
8432 39 00
--
Other
u
7.5%
-”;
(b) for tariff item 8432 40 00 and the entries relating thereto, the following shall be substituted, namely:—
“-
Manure spreaders and fertiliser distributors:
8432 41 00
--
Manure spreaders
u
7.5%
-
8432 42 00
--
Fertiliser distributors
u
7.5%
-”;
20
(viii) for heading 8442 and the entries relating thereto, the following shall be substituted, namely:—
“8442
MACHINERY, APPARATUS AND EQUIPMENT (OTHER THAN
THE MACHINES OF HEADINGS 8456 TO 8465) FOR
PREPARING OR MAKING PLATES,
PRINTING
COMPONENTS; PLATES, CYLINDERS AND LITHOGRAPHIC
STONES, PREPARED FOR PRINTING PURPOSES (FOR
EXAMPLE, PLANED, GRAINED OR POLISHED)”;
25
(ix) in heading 8456,—
(a) for tariff item 8456 10 00 and the entries relating thereto, the following shall be substituted, namely:—
30
“-
Operated by laser or other light or photon beam processes:
8456 11 00
--
Operated by laser
u
7.5%
-
8456 12 00
--
Operated by other light or photon beam processes
u
7.5%
-”;
(b) after tariff item 8456 30 00 and the entries relating thereto, the following shall be inserted, namely:—
“8456 40 00
-
Operated by plasma arc processes
u
7.5%
-
8456 50 00
-
Water-jet cutting machines
u
7.5%
-”;
35
(x) for sub-heading 8459 40, tariff items 8459 40 10 to 8459 40 90 and the entries relating thereto, the following shall be
substituted, namely:—
“-
Other boring machines:
8459 41
--
Numerically controlled:
8459 41 10
---
Jig boring machines, horizontal
u
7.5%
-
8459 41 20
---
Fine boring machines, horizontal
u
7.5%
-
8459 41 30
---
Fine boring machines, vertical
u
7.5%
-
40
119
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
8459 41 90
---
Other
--
Other:
8459 49 10
---
8459 49 20
(4)
(5)
u
7.5%
-
Jig boring machines, horizontal
u
7.5%
-
---
Fine boring machines, horizontal
u
7.5%
-
8459 49 30
---
Fine boring machines, vertical
u
7.5%
-
8459 49 90
---
Other
u
7.5%
-”;
5 8459 49
10
Rate of Duty
Standard Preferential
(xi) for heading 8460, tariff items 8460 11 00 to 8460 21 00, sub-heading 8460 29, tariff items 8460 29 10 to 8460 29 90
and the entries relating thereto, the following shall be substituted, namely:—
“8460
MACHINE-TOOLS FOR DEBURRING, SHARPENING, GRINDING,
HONING, LAPPING, POLISHING OR OTHERWISE FINISHING
METAL, OR CERMETS BY MEANS OF GRINDING STONES,
ABRASIVES OR POLISHING PRODUCTS, OTHER THAN
GEAR CUTTING, GEAR GRINDING OR GEAR FINISHING
MACHINES OF HEADING 8461
15
-
Flat-surface grinding machines:
8460 12 00
--
Numerically controlled
u
7.5%
-
20 8460 19 00
--
Other
u
7.5%
-
-
Other grinding machines:
8460 22 00
--
Centreless grinding machines, numerically controlled
u
7.5%
-
8460 23 00
--
Other cylindrical grinding machines, numerically controlled
u
7.5%
-
8460 24 00
--
Other, numerically controlled
u
7.5%
-
--
Other:
8460 29 10
---
Cylindrical grinders
u
7.5%
-
8460 29 20
---
Internal grinders
u
7.5%
-
8460 29 30
---
Centreless grinders
u
7.5%
-
8460 29 40
---
Profile grinders
u
7.5%
-
30 8460 29 90
---
Other
u
7.5%
-”;
25 8460 29
(xii) after tariff item 8465 10 00 and the entries relating thereto, the following shall be inserted, namely:—
“8465 20 00
-
Machining centres
u
7.5%
-”;
(xiii) in heading 8466,—
(a) for heading 8466, and the entries relating thereto, the following shall be substituted, namely:—
35 “8466
PARTS AND ACCESSORIES SUITABLE FOR USE SOLELY
OR PRINCIPALLY WITH THE MACHINES OF HEADINGS 8456
TO 8465 INCLUDING WORK OR TOOL HOLDERS, SELFOPENING DIEHEADS, DIVIDING HEADS AND OTHER
SPECIAL ATTACHMENTS FOR THE MACHINES; TOOL
HOLDERS FOR ANY TYPE OF TOOL, FOR WORKING IN THE
HAND”;
40
(b) for sub-heading 8466 30 and the entries relating thereto, the following shall be substituted, namely:—
“8466 30
45
-
Dividing heads and other special attachments for machines:” ;
(xiv) the heading 8469, sub-heading 8469 00, tariff items 8469 00 10 to 8469 00 90 and the entries relating thereto shall
be omitted;
(xv) in heading 8472, for tariff item 8472 90 90 and the entries relating thereto the following shall be substituted, namely:—
120
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
Rate of Duty
Standard Preferential
(4)
(5)
“---
Other:
8472 90 91
----
Word-processing machines
u
free
-
8472 90 92
----
Automatic typewriters
u
10%
-
8472 90 93
----
Braille typewriters, electric
u
7.5%
-
8472 90 94
----
Braille typewriters, non-electric
u
7.5%
-
8472 90 95
----
Other typewriters, electric or non-electric
u
10%
-
8472 90 99
----
Other
u
7.5%
- ”;
5
10
(xvi) in heading 8473,—
(a) for heading 8473 and the entries relating thereto, the following shall be substituted, namely:—
“8473
PARTS AND ACCESSORIES (OTHER THAN COVERS,
CARRYING CASES AND THE LIKE) SUITABLE FOR USE
SOLELY OR PRINCIPALLY WITH MACHINES OF HEADINGS
8470 TO 8472”;
15
(b) the tariff item 8473 10 00 and the entries relating thereto shall be omitted;
(c) for tariff item 8473 50 00 and the entries relating thereto, the following shall be substituted, namely:—
“8473 50 00
-
Parts and accessories equally suitable for use with the machines
of two or more of the headings 8470 to 8472
u
free
-”;
20
(38) in Chapter 85,—
(i) in the Notes, after Note 2, the following shall be inserted, namely:—
‘3. For the purposes of heading 8507, the expression “electric accumulators” includes those presented with ancillary
components which contribute to the accumulator’s function of storing and supplying energy or protect it from damage, such
as electrical connectors, temperature control devices (for example, thermistors) and circuit protection devices. They may
also include a portion of the protective housing of the goods in which they are to be used.’;
25
(ii) the existing Notes 3, 4, 5, 6, 7, 8 and 9 shall respectively be re-numbered as 4, 5, 6, 7, 8, 9 and 10 ;
(iii) in Note 9 as so re-numbered, in clause (b), after sub-clause (iii), the following new sub-clause shall be inserted,
namely:—
‘(iv) Multi-component integrated circuits (MCOs): a combination of one or more monolithic, hybrid, or multi-chip integrated
circuits with at least one of the following components: silicon-based sensors, actuators, oscillators, resonators or
combinations thereof, or components performing the functions of articles classifiable under heading 8532, 8533, 8541, or
inductors classifiable under heading 8504, formed to all intents and purposes indivisibly into a single body like an integrated
circuit, as a component of a kind used for assembly onto a printed circuit board (PCB) or other carrier, through the
connecting of pins, leads, balls, lands, bumps, or pads.
30
35
For the purpose of this definition:
(1)
“Components” may be discrete, manufactured independently then assembled onto the rest of the MCO, or
integrated into other components.
(2)
“Silicon based” means built on a silicon substrate, or made of silicon materials, or manufactured onto integrated
circuit die.
(3) (a) “Silicon based sensors” consist of microelectronic or mechanical structures that are created in the mass or on
the surface of a semiconductor and that have the function of detecting physical or chemical quantities and transducing
these into electric signals, caused by resulting variations in electric properties or displacement of a mechanical structure.
“Physical or chemical quantities” relates to real world phenomena, such as pressure, acoustic waves, acceleration,
vibration, movement, orientation, strain, magnetic field strength, electric field strength, light, radioactivity, humidity,
flow, chemicals concentration, etc.
40
45
(b) “Silicon based actuators” consist of microelectronic and mechanical structures that are created in the mass or on
the surface of a semiconductor and that have the function of converting electrical signals into physical movement.
(c) “Silicon based resonators” are components that consist of microelectronic or mechanical structures that are created in
the mass or on the surface of a semiconductor and have the function of generating a mechanical or electrical oscillation of
50
121
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
Rate of Duty
Standard Preferential
(4)
(5)
a predefined frequency that depends on the physical geometry of these structures in response to an external input.
5
(d) “Silicon based oscillators” are active components that consist of microelectronic or mechanical structures that are
created in the mass or on the surface of a semiconductor and that have the function of generating a mechanical or electrical
oscillation of a predefined frequency that depends on the physical geometry of these structures.’;
(iv) in heading 8528, for tariff items 8528 41 00 to 8528 69 00 and the entries relating thereto, the following shall be
substituted, namely:—
10 “8528 42 00
--
Capable of directly connecting to and designed for use with
an automatic data processing machine of heading 8471
u
10%
-
--
Other
u
10%
-
-
Other monitors:
8528 52 00
--
Capable of directly connecting to and designed for use with an
automatic data processing machine of heading 8471
u
10%
-
8528 59 00
--
Other
u
10%
-
-
Projectors:
8528 62 00
--
Capable of directly connecting to and designed for use with
an automatic data processing machine of heading 8471
u
10%
-
20 8528 69 00
--
Other
u
10%
-”;
8528 49 00
15
(v) for tariff item 8531 20 00 and the entries relating thereto, the following shall be substituted, namely:—
“8531 20 00
-
Indicator panels incorporating liquid crystal devices (LCD) or
light-emitting diodes (LED)
u
Free
-”;
(vi) in heading 8539,—
(a) for heading 8539 and the entries relating thereto, the following shall be substituted, namely:—
25
“8539
ELECTRIC FILAMENT OR DISCHARGE LAMPS INCLUDING
SEALED BEAM LAMP UNITS AND ULTRA-VIOLET OR
INFRA-RED LAMPS, ARC LAMPS; LIGHT-EMITTING DIODE
(LED) LAMPS”;
(b) after tariff item 8539 49 00 and the entries relating thereto, the following shall be inserted, namely:—
30
“8539 50 00
-
Light-emitting diode (LED) lamps
u
10%
-”;
(vii) in heading 8541,—
(a) for heading 8541 and the entries relating thereto, the following shall be substituted, namely:—
“8541
DIODES, TRANSISTORS AND SIMILAR SEMI-CONDUCTOR
DEVICES; PHOTOSENSITIVE SEMI-CONDUCTOR DEVICES;
INCLUDING PHOTO VOLTAIC CELLS, WHETHER OR NOT
ASSEMBLED IN MODULES OR MADE UP INTO PANELS;
LIGHT-EMITTING DIODES (LED); MOUNTED PIEZOELECTRIC CRYSTALS”;
35
40
(b) for tariff item 8541 10 00 and the entries relating thereto, the following shall be substituted, namely:—
“8541 10 00
-
Diodes, other than photosensitive or light-emitting diodes (LED)
u
Free
(c) for sub-heading 8541 40 and the entries relating thereto, the following shall be substituted, namely:—
“8541 40
45
-
Photosensitive semi-conductor devices, including photo voltaic
cells whether or not assembled in modules or made up into
panels; light-emitting diodes (LED):”;
(39) in Section XVII, in Note 2, for clause (e), the following clause shall be substituted, namely:—
-”;
122
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
Rate of Duty
Standard Preferential
(4)
(5)
“(e) machines and apparatus of headings 8401 to 8479, or parts thereof, other than the radiators for the articles of this
Section, articles of heading 8481 or 8482 or, provided they constitute integral parts of engines and motors, articles of heading
8483; “;
5
(40) in Chapter 87,—
(i) in heading 8701,—
(a) for tariff item 8701 10 00, the following shall be substituted, namely:—
“8701 10 00
-
Single axle tractors
u
10%
-”;
10
(b) for sub-heading 8701 90, tariff items 8701 90 10 and 8701 90 90 and the entries relating thereto, the following shall
be substituted, namely:—
“-
Other, of an engine power:
8701 91 00
--
Not exceeding 18 kW
u
10%
-
8701 92 00
--
Exceeding 18 kW but not exceeding 37 kW
u
10%
-
8701 93 00
--
Exceeding 37 kW but not exceeding 75 kW
u
10%
-
8701 94 00
--
Exceeding 75 kW but not exceeding 130 kW
u
10%
-
8701 95 00
--
Exceeding 130 kW
u
10%
-”;
(ii) in heading 8702, for sub-heading 8702 10, tariff items 8702 10 11 to 8702 10 99, sub-heading 8702 90, tariff items
8702 90 11 to 8702 90 99, the following shall be substituted, namely:—
“8702 10
-
Vehicles for transport of not more than 13 persons, including
the driver:
8702 10 11
----
Integrated monocoque vehicle, air-conditioned
u
40%
-
8702 10 12
----
Integrated monocoque vehicle, non air-conditioned
u
40%
-
8702 10 18
----
Other, air-conditioned
u
40%
-
8702 10 19
----
Other, non air-conditioned
u
40%
-
---
Other:
8702 10 21
----
Integrated monocoque vehicle, air-conditioned
u
40%
-
8702 10 22
----
Integrated monocoque vehicle, non air-conditioned
u
40%
-
8702 10 28
----
Other, air-conditioned
u
40%
-
8702 10 29
----
Other, non air-conditioned
u
40%
-
-
With both compression-ignition internal combustion piston
engine (diesel or semi-diesel) and electric motor as motors for
propulsion:
25
30
35
---
Vehicles for transport of not more than 13 persons, including
the driver:
8702 20 11
----
Integrated monocoque vehicle, air-conditioned
u
40%
-
8702 20 12
----
Integrated monocoque vehicle, non air-conditioned
u
40%
-
8702 20 18
----
Other, air-conditioned
u
40%
-
8702 20 19
----
Other, non air-conditioned
u
40%
-
---
Other:
----
Integrated monocoque vehicle, air-conditioned
u
40%
-
8702 20 21
20
With only compression-ignition internal combustion piston
engine (diesel or semi-diesel):
---
8702 20
15
40
123
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
Rate of Duty
Standard Preferential
(4)
(5)
8702 20 22
----
Integrated monocoque vehicle, non air-conditioned
u
40%
-
5 8702 20 28
----
Other, air-conditioned
u
40%
-
8702 20 29
----
Other, non air-conditioned
u
40%
-
8702 30
-
With both spark-ignition internal combustion reciprocating
piston engine and electric motor as motors for propulsion:
---
Vehicles for transport of not more than 13 persons, including
the driver:
8702 30 11
----
Integrated monocoque vehicle, air-conditioned
u
40%
-
8702 30 12
----
Integrated monocoque vehicle, non air-conditioned
u
40%
-
8702 30 18
----
Other, air-conditioned
u
40%
-
8702 30 19
----
Other, non air-conditioned
u
40%
-
---
Other:
8702 30 21
----
Integrated monocoque vehicle, air-conditioned
u
40%
-
8702 30 22
----
Integrated monocoque vehicle, non air-conditioned
u
40%
-
8702 30 28
----
Other, air-conditioned
u
40%
-
8702 30 29
----
Other, non air-conditioned
u
40%
-
10
15
20 8702 40
-
With only electric motor for propulsion:
---
Vehicles for transport of not more than 13 persons, including
the driver:
8702 40 11
----
Integrated monocoque vehicle, air-conditioned
u
40%
-
8702 40 12
----
Integrated monocoque vehicle, non air-conditioned
u
40%
-
25 8702 40 18
----
Other, air-conditioned
u
40%
-
8702 40 19
----
Other, non air-conditioned
u
40%
-
---
Other:
8702 40 21
----
Integrated monocoque vehicle, air-conditioned
u
40%
-
8702 40 22
----
Integrated monocoque vehicle, non air-conditioned
u
40%
-
30 8702 40 28
----
Other, air-conditioned
u
40%
-
8702 40 29
----
Other, non air-conditioned
u
40%
8702 90
-
Other:
---
Vehicles for transport of not more than 13 persons, including
the driver:
35 8702 90 11
----
Integrated monocoque vehicle, air-conditioned
u
40%
-
8702 90 12
----
Integrated monocoque vehicle, non air-conditioned
u
40%
-
8702 90 18
----
Other, air-conditioned
u
40%
-
8702 90 19
----
Other, non air-conditioned
u
40%
-
---
Other:
40 8702 90 21
----
Integrated monocoque vehicle, air-conditioned
u
40%
-
8702 90 22
----
Integrated monocoque vehicle, non air-conditioned
u
40%
-
8702 90 28
----
Other, air-conditioned
u
40%
-
124
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
8702 90 29
----
Other, non air-conditioned
u
Rate of Duty
Standard Preferential
(4)
40%
(5)
-”;
(iii) in heading 8703,—
5
(a) in the entry in column (2) occurring after tariff item 8703 10 90 and the entries relating thereto, after the word “with”, the
word “only” shall be inserted;
(b) in the entry in column (2) occurring after tariff item 8703 24 99 and the entries relating thereto, for the words “with
compression ignition” the words “with only compression-ignition” shall be substituted;
10
(c) the tariff items 8703 31 20 and 8703 32 20 and the entries relating thereto shall be omitted;
(d) after tariff item 8703 33 99 and the entries relating thereto, the following shall be inserted, namely:—
“8703 40
-
Other vehicles, with both spark-ignition internal combustion
reciprocating piston engine and electric motor as motors for
propulsion, other than those capable of being charged by
plugging to external source of electric power:
15
8703 40 10
---
Vehicles principally designed for transport of more than seven
persons, including driver
u
125%
-
8703 40 20
---
Specialised transport vehicles such as ambulances, prison
vans and the like
u
125%
-
8703 40 30
---
Motor cars
u
125%
-
8703 40 40
---
Three-wheeled vehicles
u
125%
-
8703 40 90
---
Other
u
125%
-
8703 50
-
Other vehicles, with both compression-ignition internal
combustion piston engine (diesel or semi-diesel) and electric
motor as motors for propulsion, other than those capable of
being charged by plugging to external source of electric power:
20
25
8703 50 10
---
Vehicles principally designed for transport of more than seven
persons, including driver
u
125%
-
8703 50 20
---
Specialised transport vehicles such as ambulances, prison
vans and the like
u
125%
-
8703 50 30
---
Motor cars
u
125%
-
8703 50 40
---
Three-wheeled vehicles
u
125%
-
8703 50 90
---
Other
u
125%
-
8703 60
-
Other vehicles, with both spark-ignition internal combustion
reciprocating piston engine and electric motor as motors for
propulsion, capable of being charged by plugging to external
source of electric power:
30
35
8703 60 10
---
Vehicles principally designed for transport of more than seven
persons, including driver
u
125%
-
8703 60 20
---
Specialised transport vehicles such as ambulances, prison
vans and the like
u
125%
40
8703 60 30
---
Motor cars
u
125%
-
8703 60 40
---
Three-wheeled vehicles
u
125%
-
8703 60 90
---
Other
u
125%
-
8703 70
-
Other vehicles, with both compression-ignition internal
combustion piston engine (diesel or semi-diesel) and electric
motor as motors for propulsion, capable of being charged by
plugging to external source of electric power:
45
125
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
Rate of Duty
Standard Preferential
(4)
(5)
8703 70 10
---
Vehicles principally designed for transport of more than seven
persons, including driver
u
125%
-
8703 70 20
---
Specialised transport vehicles such as ambulances, prison
vans and the like
u
125%
-
8703 70 30
---
Motor cars
u
125%
-
8703 70 40
---
Three-wheeled vehicles
u
125%
-
10 8703 70 90
---
Other
u
125%
-
8703 80
-
Other vehicles, with only electric motor for propulsion:
8703 80 10
---
Vehicles principally designed for transport of more than seven
persons, including driver
u
125%
-
8703 80 20
---
Specialised transport vehicles such as ambulances, prison
vans and the like
u
125%
-
8703 80 30
---
Motor cars
u
125%
-
8703 80 40
---
Three-wheeled vehicles
u
125%
-
8703 80 90
---
Other
u
125%
-”;
5
15
20
(e) for sub-heading 8703 90, tariff items 8703 90 10 and 8703 90 90 and the entries relating thereto, the following shall
be substituted, namely:—
“8703 90 00
-
Other
u
125%
-”;
(iv) in heading 8711,—
(a) after tariff item 8711 50 00 and the entries relating thereto, the following shall be inserted, namely:—
“8711 60
-
With electric motor for propulsion:
25 8711 60 10
---
Motor cycles
u
100%
-
8711 60 20
---
Scooters
u
100%
-
8711 60 30
---
Mopeds
u
100%
-
8711 60 90
---
Others
u
100%
-”;
30
(b) for sub-heading 8711 90, tariff items 8711 90 10 to 8711 90 99 and the entries relating thereto, the following shall be
substituted, namely:—
“8711 90
-
Other:
8711 90 10
---
Side cars
u
100%
-
8711 90 90
---
Other
u
100%
-”;
(41) in Chapter 90,—
35
(i) in Note 1,—
(A) in clause (g), after the word “machine-tools”, the words “or water-jet cutting machines” shall be inserted;
(B) after clause (k), the following clause shall be inserted, namely:—
“(l) monopods, bipods, tripods and similar articles, of heading 9620;”;
(C) the existing clauses (l) and (m) shall respectively be re-lettered as (m) and (n);
40
(ii) in heading 9006, the tariff item 9006 10 00 and the entries relating thereto shall be omitted;
(42) in Chapter 92, in Note 1, for clause (d), the following clause shall be substituted, namely:—
“(d) brushes for cleaning musical instruments (heading 9603), or monopods, bipods, tripods and similar articles (heading
9620); or”;
126
Tariff Item
Description of goods
Unit
(1)
(2)
(3)
Rate of Duty
Standard Preferential
(4)
(5)
(43) in Chapter 94,—
(i) in Note 1,—
5
(A) in clause (k), the word “or” shall be omitted;
(B) in clause (l), the word “or” shall be inserted at the end;
(C) after clause (l), the following clause shall be inserted, namely:—
“(m) monopods, bipods, tripods and similar articles (heading 9620).”;
(ii) for tariff item 9401 51 00 and the entries relating thereto, the following shall be substituted, namely:—
10
“9401 52 00
--
Of bamboo
u
10%
-
9401 53 00
--
Of rattan
u
10%
-”;
(iii) for tariff item 9403 81 00 and the entries relating thereto, the following shall be substituted, namely:—
“9401 82 00
--
Of bamboo
u
10%
-
9401 83 00
--
Of rattan
u
10%
-”;
15
(iv) for heading 9406, sub-heading 9406 00, tariff items 9406 00 11 to 9406 00 99 and the entries relating thereto, the
following shall be substituted, namely:—
“9406
PREFABRICATED BUILDINGS
9406 10
-
Of wood:
9406 10 10
---
Green-houses
u
10%
-
9406 10 20
---
For cold storage
u
10%
-
9406 10 30
---
Silos for storing ensilage
u
10%
-
9406 10 90
---
Other
u
10%
-
9406 90
-
Other:
9406 90 10
---
Green-houses
u
10%
-
9406 90 20
---
For cold storage
u
10%
-
9406 90 30
---
Silos for storing ensilage
u
10%
-
9406 90 90
---
Other
u
10%
-”;
20
25
(44) in Chapter 95,—
30
(i) in Note 1,—
(A) for clause (e), the following clause shall be substituted, namely:—
“(e) fancy dress of textiles, of Chapter 61 or 62; sports clothing and special articles of apparel of textiles, of Chapter 61
or 62, whether or not incorporating incidentally protective components such as pads or padding in the elbow, knee or
groin areas (for example, fencing clothing or soccer goalkeeper jerseys);”;
(B) after clause (t), the following clause shall be inserted, namely:—
35
“(u) monopods, bipods, tripods and similar articles (heading 9620);”;
(C) the existing clauses (u) and (v) shall respectively be re-lettered as (v) and (w);
(45) in Chapter 96, after tariff item 9619 00 90 and the entries relating thereto, the following shall be inserted, namely:—
“9620 00 00
-
MONOPODS, BIPODS, TRIPODS AND SIMILAR ARTICLES
u
10%
-”.
THE FIFTH SCHEDULE
[See section 142 (i)]
In the Third Schedule to the Central Excise Act,––
(a) for S. Nos. 40 and 41 and the entries relating thereto, the following S. Nos. and entries shall be substituted, namely:––
5
S. No.
Heading, sub-heading or tariff items
Description of goods
(1)
(2)
(3)
“40.
3401
All goods
41.
3402
All goods”;
(b) after S. No. 63 and the entries relating thereto, the following S. No. and entries shall be inserted, namely:––
10
S. No.
Heading, sub-heading or tariff items
Description of goods
(1)
(2)
(3)
“63A.
7607
All goods”;
(c) after S. No. 81C and the entries relating thereto, the following S. No. and entries shall be inserted, namely:––
15
S. No.
Heading, sub-heading or tariff items
Description of goods
(1)
(2)
(3)
“81D.
8517 62
Wrist wearable devices (commonly
known as smart watches)”;
(d) against S.No. 100, in column (3), for the words “Parts, components and assemblies”, the words “Parts, components,
accessories and assemblies” shall be substituted;
20
(e) against S.No. 100A, in column (3), for the words “Parts, components and assemblies”, the words “Parts, components,
accessories and assemblies” shall be substituted.
127
THE SIXTH SCHEDULE
[See section 142 (ii)]
In the Third Schedule to the Central Excise Act,––
(a) against S. No. 58, for the entry in column (3), the entry “vitrified tiles, whether polished or not, glazed tiles” shall be
substituted;
(b) S. No. 59 and the entries relating thereto shall be omitted.
128
5
THE SEVENTH SCHEDULE
[See section 143 (i)]
In the First Schedule to the Central Excise Tariff Act,––
5
(a) in Chapter 22, for the entries in column (4) occurring against tariff items 2202 10 10, 2202 10 20 and 2202 10 90, the entry
“21%” shall be substituted;
(b) in Chapter 24,––
(i) for the entries in column (4) occurring against tariff items 2401 10 10, 2401 10 20, 2401 10 30, 2401 10 40, 2401 10
50, 2401 10 60, 2401 10 70, 2401 10 80, 2401 10 90, 2401 20 10, 2401 20 20, 2401 20 30, 2401 20 40, 2401 20 50, 2401
20 60, 2401 20 70, 2401 20 80 and 2401 20 90, the entry “64%” shall be substituted;
10
(ii) for the entry in column (4) occurring against tariff items 2402 10 10 and 2402 10 20, the entry “12.5% or Rs. 3755 per
thousand whichever is higher” shall be substituted;
(iii) for the entry in column (4) occurring against tariff item 2402 90 10, the entry “Rs. 3755 per thousand” shall be
substituted;
15
(iv) for the entry in column (4) occurring against tariff items 2402 90 20 and 2402 90 90, the entry “12.5% or Rs. 3755 per
thousand, whichever is higher” shall be substituted;
(v) for the entries in column (4) occurring against tariff items 2403 19 29, the entry “Rs. 80 per thousand” shall be
substituted;
(vi) for the entries in column (4) occurring against tariff items 2403 99 10, 2403 99 30 and 2403 99 90, the entry “81%”
shall be substituted.
20
(c) in Chapter 27, in the Supplementary Note,––
(i) in clause (e), for the figures “1460:2000”, the figures “1460:2005” shall be substituted;
(ii) in clause (f), for the figures “1460”, the figures “15770:2008” shall be substituted;
(d) in Chapter 58, in heading 5801,–
(i) in sub-heading 5801 37, the entry in column (2) “--- Warp pile fabrics, ‘epingle’ (uncut):” shall be omitted;
25
30
(ii) for tariff items 5801 37 11 and 5801 37 19 and the entries relating thereto, the following shall be substituted,
namely:–
(1)
(2)
(3)
(4)
“5801 37 10
--- Warp pile fabrics, uncut
m²
12.5%”;
(e) in Chapter 71, in heading 7104, for the tariff item 7104 90 00 and the entries relating thereto, the following shall be
substituted, namely:—
(1)
“7104 90
7104 90 10
35
7104 90 90
(2)
(3)
(4)
c/k
12.5%
kg.
12.5%”;
- Other:
--- Laboratory-created or laboratory grown or
manmade or cultured or synthetic diamonds
--- Other
(f) in Chapter 85, in heading 8525, the tariff item 8525 50 50 and the entries relating thereto shall be omitted.
129
THE EIGHTH SCHEDULE
[See section 143 (ii)]
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
5
In the First Schedule to the Central Excise Tariff Act, 1985,––
(1) in Chapter 3,––
(i) in Note 1, in clause (c), for the words “livers and roes”, the words “livers, roes and milt” shall be substituted;
(ii) in heading 0301, for tariff items 0301 93 00 and the entries relating thereto, the following shall be substituted,
10
namely:––
“0301 93 00
--
Carp (Cyprinus spp., Carassius spp., Ctenopharyngodon idellus,
Hypophthalmichthys spp., Cirrhinus spp., Mylopharyngodon piceus, Catla
catla, Labeo spp., Osteochilus hasselti, Leptobarbus hoeveni,
Megalobrama spp.)
kg.
Nil ”;
(iii) for heading 0302, tariff items 0302 11 00 to 0302 85 00, sub-heading 0302 89, tariff items 0302 89 10 to 0302 90 00 and 15
the entries relating thereto, the following shall be substituted, namely:––
“0302
FISH, FRESH OR CHILLED, EXCLUDING FISH FILLETS AND OTHER
FISH MEAT OF HEADING 0304
-
Salmonidae, excluding edible fish offal of sub-headings 0302 91 to 0302 99:
0302 11 00
--
Trout (Salmo trutta, Oncorhyncus mykiss, Oncorhyncus clarkii,
Oncorhyncus aguabonita, Oncorhyncus gilae, Oncorhyncus apache and
Oncorhyncus chrysogaster)
kg.
Nil
0302 13 00
--
Pacific salmon (Oncorhynchus nerka, Oncorhynchus gorbuscha,
Oncorhynchus keta, Oncorhynchus tschawytscha, Oncorhynchus kisutch,
Oncorhynchus masou and Oncorhynchus rhodurus)
kg.
Nil
25
0302 14 00
--
Atlantic salmon (Salmo salar) and Danube salmon (Hucho hucho)
kg.
Nil
0302 19 00
--
Other
kg.
Nil
-
Flat fish (Pleuronectidae, Bothidae, Cynoglossidae, Soleidae,
Scophthalmidae and Citharidae), excluding edible fish offal of subheadings 0302 91 to 0301 99:
30
0302 21 00
--
Halibut (Rheinhardtius hippoglossidae, Hippoglossus hippoglossus,
Hippoglossus stenolepis)
kg.
Nil
0302 22 00
--
Plaice (Pleuronectes platessa)
kg.
Nil
0302 23 00
--
Sole (Solea spp.)
kg.
Nil
0302 24 00
--
Turbots (Psetta maxima)
kg.
Nil
0302 29 00
--
Other
kg.
Nil
-
Tunas (of the genus Thunnus), skipjack or stripe-bellied bonito
(Euthynnus (Katsuwonus) pelamis), excluding edible fish offal of subheadings 0302 91 to 0301 99:
0302 31 00
--
Albacore or long finned tunas (Thunnus alalunga)
kg.
Nil
0302 32 00
--
Yellowfin tunas (Thunnus albacares)
kg.
Nil
0302 33 00
--
Skipjack or stripe-bellied bonito
kg.
Nil
0302 34 00
--
Bigeye tunas (Thunnus obesus)
kg.
Nil
0302 35 00
--
Atlantic and Pacific bluefin tunas (Thunnus thynnus, Thunnus orientalis)
kg.
Nil
0302 36 00
--
Southern bluefin tunas (Thunnus maccoyii)
kg.
Nil
0302 39 00
--
Other
kg.
Nil
130
20
35
40
45
131
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
-
Herrings (Clupea harengus, Clupea pallasii), anchovies (Engraulis spp.),
sardines (Sardina pilchardus, Sardinops spp.), sardinella (Sardinella
spp.), brisling or sprats (Sprattus sprattus), mackerel (Scomber scombrus,
Scomber australasicus, Scomber japonicus), Indian mackerels
(Rastrelliger spp.), seerfishes (Scomberomorus spp.), jack and horse
mackerel (Trachurus spp.), jacks, crevalles (Caranx spp.), cobia
(Rachycentron canadum), silver pomfrets (Pampus spp.), Pacific saury
(Cololabis saira), scads (Decapterus spp.), capelin (Mallotus villosus),
Sword fish (Xiphias gladius), Kawakawa (Euthynnus affinis), bonitos
(Sarda spp.), marlins, sailfishes, spearfish (Istiophoridae), excluding
edible fish offal of sub-headings 0302 91 to 0302 99:
0302 41 00
--
Herrings (Clupea harengus, Clupea pallasii)
kg.
Nil
15 0302 42 00
--
Anchovies (Engraulis spp.)
kg.
Nil
0302 43 00
--
Sardines (Sardina pilchardus, Sardinops spp.), sardinella (Sardinella spp.),
brisling or sprats (Sprattus sprattus)
kg.
Nil
0302 44 00
--
Mackerel (Scomber scombrus, Scomber australasicus, Scomber japonicus)
kg.
Nil
0302 45 00
--
Jack and horse mackerel (Trachurus spp.)
kg.
Nil
20 0302 46 00
--
Cobia (Rachycentron canadum)
kg.
Nil
0302 47 00
--
Sword fish (Xiphias gladius)
kg.
Nil
0302 49 00
--
Other
kg.
Nil
-
Fish of the families Bregmacerotidae, Euclichthyidae, Gadidae,
Macrouridae,
Melanonidae, Merlucciidae, Moridae and
Muraenolepididae, excluding edible fish offal of sub-headings 0302 91
to 0302 99:
0302 51 00
--
Cod (Gadus morhua, Gadus ogac, Gadus macrocephalus)
kg.
Nil
0302 52 00
--
Haddock (Melangrammus aegllefinus)
kg.
Nil
0302 53 00
--
Coal fish (Pollachinus virens)
kg.
Nil
30 0302 54 00
--
Hake (Merluccius spp., Urophycis spp.)
kg.
Nil
0302 55 00
--
Alaska Pollack (Theragra chalcogramma)
kg.
Nil
0302 56 00
--
Blue whittings (Micromesistius poutassou, Micromesistius australis)
kg.
Nil
0302 59 00
--
Other
kg.
Nil
-
Tilapias (Oreochromis spp.), catfish (Pangasius spp., Silurus spp.,
Clarias spp., Ictalurus spp.), carp (Cyprinus spp., Carassius spp.,
Ctenopharyngodon idellus, Hypophthalmichthys spp., Cirrhinus spp.,
Mylopharyngodon piceus, Catla catla, Labeo spp., Osteochilus hasselti,
Leptobarbus hoeveni, Megalobrama spp.), eels (Anguilla spp.), Nile
perch (Lates niloticus) and snakeheads (Channa spp.), excluding edible
fish offal of sub-headings 0302 91 to 0302 99:
0302 71 00
--
Tilapias (Oreochromis spp.)
kg.
Nil
0302 72 00
--
Catfish (Pangasius spp., Silurus spp., Clarias spp., Ictalurus spp.)
kg.
Nil
0302 73 00
--
Carp (Cyprinus spp., Carassius spp., Ctenopharyngodon idellus,
Hypophthalmichthys spp., Cirrhinus spp., Mylopharyngodon piceus,
Catla catla, Labeo spp., Osteochilus hasselti, Leptobarbus hoeveni,
Megalobrama spp.):
kg.
Nil
0302 74 00
--
Eels (Anguilla spp.)
kg.
Nil
0302 79 00
--
Other
kg.
Nil
5
10
25
35
40
45
132
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
-
Other fish exculding edible fish offal of sub-headings 0302 91 to 0302 99:
0302 81 00
--
Dogfish and other sharks
kg.
Nil
0302 82 00
--
Rays and skates (Rajidae)
kg.
Nil
0302 83 00
--
Tooth fish (Dissostichus spp.)
kg.
Nil
0302 84 00
--
Seabass (Dicentrarchus spp.)
kg.
Nil
0302 85 00
--
Seabream (Sparidae)
kg.
Nil
0302 89
--
Other:
0302 89 10
- - -
Hilsa ( Tenualosa ilisha)
kg.
Nil
0302 89 20
- - -
Dara
kg.
Nil
0302 89 30
- - -
Pomfret
kg.
Nil
0302 89 90
- - -
Other
kg.
Nil
-
Livers, roes, milt, fish fins, heads, tails, maws and other edible fish offal:
0302 91
- -
Livers, roes and milt:
0302 91 10
- - -
Livers, roes and milt
0302 92
- -
Shark fins:
0302 92 10
- - -
Shark fins
0302 99
- -
Other:
0302 99 10
- - -
0302 99 90
- - -
5
10
15
kg.
Nil
kg.
Nil
Fish fins other than shark fins; heads, tails and maws
kg.
Nil
Other edible fish offal
kg.
Nil ”;
20
(iv) for heading 0303, tariff items 0303 11 00 to 0303 69 00, sub-heading 0303 81, tariff items 0303 81 10 to 0303 84 00,
sub-heading 0303 89, tariff items 0303 89 10 to 0303 89 99, sub-heading 0303 90, tariff items 0303 90 10 to 0303 90 90 and
the entries relating thereto, the following shall be substituted, namely:––
“0303
FISH, FROZEN, EXCLUDING FISH FILLETS AND OTHER FISH MEAT
OF HEADING 0304
25
-
Salmonidae, excluding edible fish offal of sub-headings 0303 91 to 0303 99:
0303 11 00
--
Sockeye salmon (red salmon) (Oncorhynchus nerka)
kg.
Nil
0303 12 00
--
Other Pacific salmon (Oncorhynchus gorbuscha, Oncorhynchus keta,
Oncorhynchus tschawytscha, Oncorhynchus kisutch, Oncorhynchus
masou and Oncorhynchus rhodurus)
kg.
Nil
30
0303 13 00
--
Atlantic salmon (Salmo salar) and Danube salmon (Hucho hucho)
kg.
Nil
0303 14 00
--
Trout (Salmo trutta, Oncorhynchus mykiss, Oncorhynchus clarkii,
Oncorhynchus aguabonita, Oncorhynchus gilae, Oncorhynchus apache
and Oncorhynchus chrysogaster)
kg.
Nil
--
Other
kg.
-
Tilapias (Oreochromis spp.), catfish (Pangasius spp., Silurus spp.,
Clarias spp., Ictalurus spp.), carp (Cyprinus carpio, Carassius carassius,
Ctenopharyngodon idellus, Hypophthalmichthys spp., Cirrhinus spp.,
Mylopharyngodon piceus, Catla catla, Labeo spp., Osteochilus hasselti,
Leptobarbus hoeveni, Megalobroma spp., eels (Anguilla spp.), Nile perch
(Lates niloticus) and snakeheads, (Channa spp.), excluding edible fish
offal of sub-headings 0303 91 to 0303 99:
0303 19 00
35
Nil
40
0303 23 00
--
Tilapias (Oreochromis spp.)
kg.
Nil
0303 24 00
--
Catfish (Pangasius spp., Silurus spp., Clarias spp., Ictalurus spp.)
kg.
Nil
45
133
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
0303 25 00
--
Carp (Cyprinus carpio, Carassius carassius, Ctenopharyngodon idellus,
Hypophthalmichthys spp., Cirrhinus spp., Mylopharyngodon piceus, Catla
catla, Labeo spp., Osteochilus hasselti, Leptobarbus hoeveni,
Megalobroma spp.)
kg.
Nil
0303 26 00
--
Eels (Anguilla spp.)
kg.
Nil
0303 29 00
--
Other
kg.
Nil
-
Flat fish (Pleuronectidae, Bothidae, Cynoglossidae, Soleidae,
Scophthalmidae and Citharidae), excluding edible fish offal of subheadings 0303 91 to 0303 99:
0303 31 00
- -
Halibut (Rheinhardtius hippoglossidae, Hippoglossus hippoglossus,
Hippoglossus stenolepis)
kg.
Nil
0303 32 00
- -
Plaice (Pleuronectes platessa)
kg.
Nil
0303 33 00
- -
Sole (Solea spp.)
kg.
Nil
0303 34 00
- -
Turbots (Psetta maxima)
kg.
Nil
0303 39 00
- -
Other
kg.
Nil
-
Tunas (of the genus Thunnus), skipjack or stripe-bellied bonito (Euthynnus
(Katsuwonus) pelamis), excluding edible fish offal of sub-headings
0303 91 to 0303 99:
0303 41 00
- -
Albacore or long finned tunas (Thunnus alalunga)
kg.
Nil
0303 42 00
- -
Yellowfin tunas (Thunnus albacares)
kg.
Nil
0303 43 00
- -
Skipjack or stripe-bellied bonito
kg.
Nil
0303 44 00
- -
Bigeye tunas (Thunnus obesus)
kg.
Nil
0303 45 00
- -
Atlantic and Pacific bluefin tunas (Thunnus thynnus, Thunnus orientalis)
kg.
Nil
0303 46 00
- -
Southern bluefin tunas (Thunnus maccoyii)
kg.
Nil
0303 49 00
- -
Other
kg.
Nil
-
Herrings (Clupea harengus, Clupea pallasii), anchovies (Engraulis spp.),
sardines (Sardina pilchardus, Sardinops spp.), sardinella (Sardinella
spp.), brisling or sprats (Sprattus sprattus), mackerel (Scomber scombrus,
Scomber australasicus, Scomber japonicus), Indian mackerels
(Rastrelliger spp.), seerfishes (Scomberomorus spp.), jack and horse
mackerel (Trachurus spp.), jacks, crevalles (Caranx spp.), cobia
(Rachycentron canadum), silver pomfrets (Pampus spp.), Pacific saury
(Cololabis saira), scads (Decapterusspp.), capelin (Mallotus villosus),
Sword fish (Xiphias gladius), Kawakawa (Euthynnus affinis), bonitos
(Sarda spp.), marlins, sailfishes, spearfish (Istiophoridae), excluding
edible fish offal of sub-headings 0303 91 to 0303 99:
0303 51 00
--
Herrings (Clupea harengus, Clupea pallasii)
kg.
Nil
0303 53 00
--
Sardines (Sardina pilchardus, Sardinops spp.), sardinella (Sardinella spp.),
brisling or sprats (Sprattus sprattus)
kg.
Nil
0303 54 00
--
Mackerel (Scomber scombrus, Scomber australasicus, Scomber japonicus)
kg.
Nil
0303 55 00
--
Jack and horse mackerel (Trachurus spp.)
kg.
Nil
0303 56 00
--
Cobia (Rachycentron canadum)
kg.
Nil
45 0303 57 00
--
Sword fish (Xiphias gladius)
kg.
Nil
0303 59 00
--
Other
kg.
Nil
5
10
15
20
25
30
35
40
134
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
-
Fish of the families Bregmacerotidae, Euclichthyidae, Gadidae,
Macrouridae,
Melanonidae,
Merlucciidae,
Moridae
and
Muraenolepididae, excluding edible fishoffal of sub-headings 0303 91
to 0303 99:
5
0303 63 00
--
Cod (Gadus morhua, Gadus ogac, Gadus macrocephalus)
kg.
Nil
0303 64 00
--
Haddock (Melanogrammus aeglefinus)
kg.
Nil
0303 65 00
--
Coal fish (Pollachius virens)
kg.
Nil
0303 66 00
--
Hake (Merluccius spp., Urophycis spp.)
kg.
Nil
0303 67 00
--
Alaska Pollack (Theragra chalcogramma)
kg.
Nil
0303 68 00
--
Blue whitings (Micromesistius poutassou, Micromesistiusaustralis)
kg.
Nil
0303 69 00
--
Other
kg.
Nil
-
Other fish, excluding edible fishoffal of sub-headings 0303 91 to 0303 99:
0303 81
--
Dogfish and other sharks:
0303 81 10
---
Dogfish
kg.
Nil
0303 81 90
---
Other Sharks
kg.
Nil
0303 82 00
--
Rays and skates (Rajidae)
kg.
Nil
0303 83 00
--
Tooth fish (Dissostichus spp.)
kg.
Nil
0303 84 00
--
Seabass (Dicentrarchus spp.)
kg.
Nil
0303 89
--
Other:
0303 89 10
---
Hilsa (Tenualosa ilisha)
kg.
Nil
0303 89 20
---
Dara
kg.
Nil
0303 89 30
---
Ribbon fish
kg.
Nil
0303 89 40
---
Seer
kg.
Nil
0303 89 50
---
Pomfret (white or silver or black)
kg.
Nil
0303 89 60
---
Ghol
kg.
Nil
0303 89 70
---
Threadfin
kg.
Nil
0303 89 80
---
Croakers, groupers and flounders
kg.
Nil
0303 89 90
- - -
Other
kg.
Nil
-
Livers, roes, milt, fish fins, heads, tails, maws and other edible fish offal:
0303 91
- -
Livers, roes and milt:
0303 91 10
- - -
Egg or egg yolk of fish
kg.
Nil
0303 91 90
- - -
Other
kg.
Nil
0303 92
- -
Shark fins:
0303 92 10
- - -
Shark fins
kg.
Nil
0303 99
- -
Other:
0303 99 10
- - -
Fish fins other than shark fins, heads, tails and maws
kg.
Nil
0303 99 90
- - -
Other edible fish offal
kg.
Nil ”;
10
15
20
25
30
35
(v) in heading 0304,––
(a) for the entry in column (2) occurring after the entry against heading 0304, the following shall be substituted, 40
namely:––
135
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
“5
10
15
(b) for tariff items 0304 46 00 to 0304 99 00 and the entries relating thereto, the following shall be substituted,
namely:––
“0304 46 00
- -
Tooth fish (Dissostichus spp.)
kg.
Nil
0304 47 00
- -
Dogfish and other sharks
kg.
Nil
0304 48 00
- -
Rays and skates (Rajidae)
kg.
Nil
0304 49
- -
Other:
0304 49 10
---
Hilsa (Tenualosa ilisha)
kg.
Nil
0304 49 30
---
Seer
kg.
Nil
0304 49 40
---
Tuna
kg.
Nil
0304 49 90
---
Other
kg.
Nil
-
Other, fresh or chilled:
0304 51 00
- -
Tilapias (Oreochromis spp.), catfish (Pangasius spp., Silurus spp.,
Clarias spp., Ictalurus spp.), carp (Cyprinus spp., Carassius spp.,
Ctenopharyngodon idellus, Hypophthalmichthys spp., Cirrhinus spp.,
Mylopharyngodon piceus, Catla catla, Labeo spp., Osteochilus hasselti,
Leptobarbus hoeveni, Megalobrama spp.), eels (Anguilla spp.), Nile
perch (Lates niloticus) and snakeheads (Channa spp.)
kg.
Nil
0304 52 00
--
Salmonidae
kg.
Nil
0304 53 00
--
Fish of the families Bregmacerotidae, Euclichthyidae, Gadidae,
Macrouridae, Melanonidae, Merlucciidae, Moridae and
Muraenolepididae
kg.
Nil
0304 54 00
--
Sword fish (Xiphias gladius)
kg.
Nil
0304 55 00
--
Tooth fish (Dissostichus spp.)
kg.
Nil
0304 56 00
- -
Dogfish and other sharks
kg.
Nil
0304 57 00
- -
Rays and skates (Rajidae)
kg.
Nil
0304 59
--
Other:
0304 59 10
---
Hilsa (Tenualosa ilisha)
kg.
Nil
0304 59 30
---
Seer
kg.
Nil
0304 59 40
---
Tuna
kg.
Nil
0304 59 90
---
Other
kg.
Nil
-
Frozen fillets of tilapias (Oreochromis spp.), catfish (Pangasius spp.,
Silurus spp., Clarias spp., Ictalurus spp.), carp (Cyprinus spp., Carassius
spp., Ctenopharyngodon idellus, Hypophthalmichthys spp., Cirrhinus
spp., Mylopharyngodon piceus, Catla catla, Labeo spp., Osteochilus
hasselti, Leptobarbus hoeveni, Megalobrama spp.), eels (Anguilla spp.),
Nile perch (Lates niloticus) and snakeheads (Channa spp.):
0304 61 00
--
Tilapias (Oreochromis spp.)
kg.
Nil
0304 62 00
--
Catfish (Pangasius spp., Silurus spp., Clarias spp., Ictalurus spp.)
kg.
Nil
20
25
30
35
Fresh or chilled fillets of tilapias (Oreochromis spp.), catfish (Pangasius
spp., Silurus spp., Clarias spp., Ictalurus spp.), carp (Cyprinus spp.,
Carassius spp., Ctenopharyngodon idellus, Hypophthalmichthys spp.,
Cirrhinus spp., Mylopharyngodon piceus, Catla catla, Labeo spp.,
Osteochilus hasselti, Leptobarbus hoeveni, Megalobrama spp.), eels
(Anguilla spp.), Nile perch (Lates niloticus) and snakeheads (Channa
spp.):”;
40
45
136
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
0304 63 00
--
Nile Perch (Lates niloticus)
kg.
Nil
0304 69 00
--
Other
kg.
Nil
-
Frozen fillets of fish of Bregmacerotidae, Euclichthyidae, Gadidae,
Macrouridae, Melanonidae, Merlucciidae, Moridae and
Muraenolepididae:
0304 71 00
--
Cod (Gadus morhua, Gadus ogac, Gadus macrocephalus)
kg.
Nil
0304 72 00
--
Haddock (Melanogrammus aeglefinus)
kg.
Nil
0304 73 00
--
Coal fish (Pollachius virens)
kg.
Nil
0304 74 00
--
Hake (Merluccius spp., Urophycis spp.)
kg.
Nil
0304 75 00
--
Alaska Pollack (Theragra chalcogramma)
kg.
Nil
0304 79 00
--
Other
kg.
Nil
-
Frozen fillets of other fish:
0304 81 00
--
Pacific salmon (Oncorhynchus nerka, Oncorhynchus gorbuscha,
Oncorhynchus keta, Oncorhynchus tschawytscha, Oncorhynchus
kisutch, Oncorhynchus masou and Oncorhynchus rhodurus), Atlantic
salmon (Salmo salar) and Danube salmon (Hucho hucho)
kg.
Nil
0304 82 00
--
Trout (Salmo trutta, Oncorhynchus mykiss, Oncorhynchus clarkii,
Oncorhynchus aguabonita, Oncorhynchus gilae, Oncorhynchus apache
and Oncorhynchus chrysogaster)
kg.
Nil
5
10
15
20
0304 83 00
--
Flat fish (Pleuronectidae, Bothidae, Cynoglossidae, Soleidae,
Scophthalmidae and Citharidae)
kg.
Nil
0304 84 00
--
Sword fish (Xiphias gladius)
kg.
Nil
0304 85 00
--
Tooth fish (Dissostichus spp.)
kg.
Nil
0304 86 00
--
Herrings (Clupea harengus, Clupea pallasii)
kg.
Nil
0304 87 00
--
Tunas (of the genus Thunnus), skipjack or stripe-bellied bonito
(Euthynnus, Katsuwonus, pelamis)
kg.
Nil
0304 88
--
Dogfish, other sharks Rays and skates (Rajidae):
0304 88 10
---
Dogfish
kg.
Nil
0304 88 20
---
Other sharks
kg.
Nil
0304 88 30
---
Rays and skates (Rajidae)
kg.
Nil
0304 89
--
Other:
0304 89 10
---
Hilsa (Tenualosa ilisha)
kg.
Nil
0304 89 30
---
Seer
kg.
Nil
0304 89 40
---
Tuna
kg.
Nil
0304 89 90
---
Other
kg.
Nil
-
Other, frozen:
0304 91 00
--
Sword fish (Xiphias gladius)
kg.
Nil
0304 92 00
--
Tooth fish (Dissostichus spp.)
kg.
Nil
0304 93 00
--
Tilapias (Oreochromis spp.), catfish (Pangasius spp., Silurus spp.,
Clarias spp., Ictalurus spp.), carp (Cyprinus spp., Carassius spp.,
Ctenopharyngodon idellus, Hypophthalmichthys spp., Cirrhinus spp.,
Mylopharyngodon piceus, Catla catla, Labeo spp., Osteochilus hasselti,
Leptobarbus hoeveni, Megalobrama spp.), eels (Anguilla spp.), Nile
perch (Lates niloticus) and snakeheads (Channa spp.)
kg.
Nil
25
30
35
40
45
137
Tariff Item
Description of goods
(1)
Rate of Duty
(4)
(2)
(3)
0304 94 00
--
Alaska Pollack (Theragra chalcogramma)
kg.
Nil
0304 95 00
--
Fish of the families Bregmacerotidae, Euclichthyidae, Gadidae,
Macrouridae,
Melanonidae,
Merlucciidae,
Moridae
and
Muraenolepididae, Alaska Pollack (Theragra chalcogramma)
kg.
Nil
0304 96 00
--
Dogfish and other sharks
kg.
Nil
0304 97 00
--
Rays and skates (Rajidae)
kg.
Nil
0304 99 00
--
Other
kg.
Nil ”;
5
10
Unit
(vi) in heading 0305,––
(a) for tariff item 0305 20 00 and the entries relating thereto, the following shall be substituted, namely:––
“0305 20 00
-
Livers, roes and milt of fish, dried, smoked, salted or in brine
kg.
Nil ”;
(b) for tariff item 0305 31 00 and the entries relating thereto, the following shall be substituted, namely:––
“0305 31 00
--
15
20
Tilapias (Oreochromis spp.), catfish (Pangasius spp., Silurus spp.,
Clarias spp., Ictalurus spp.), carp (Cyprinus spp., Carassius spp.,
Ctenopharyngodon idellus, Hypophthalmichthys spp., Cirrhinus spp.,
Mylopharyngodon piceus, Catla catla, Labeo spp., Osteochilus hasselti,
Leptobarbus hoeveni, Megalobrama spp.), eels (Anguilla spp.), Nile perch
(Lates niloticus) and snakeheads (Channa spp.)
kg.
Nil ”;
(c) for tariff item 0305 44 00 and the entries relating thereto, the following shall be substituted, namely:––
“0305 44 00
--
25
Tilapias (Oreochromis spp.), catfish (Pangasius spp., Silurus spp., Clarias
spp., Ictalurus spp.), carp (Cyprinus spp., Carassius spp.,
Ctenopharyngodon idellus, Hypophthalmichthys spp., Cirrhinus spp.,
Mylopharyngodon piceus, Catla catla, Labeo spp., Osteochilus hasselti,
Leptobarbus hoeveni, Megalobrama spp.), eels (Anguilla spp.), Nile perch
(Lates niloticus) and snakeheads (Channa spp.)
kg.
Nil ”;
(d) after tariff item 0305 51 00 and the entries relating thereto, the following shall be inserted, namely:––
“0305 52 00
--
Tilapias (Oreochromis spp.), catfish (Pangasius spp., Silurus spp., Clarias
spp., Ictalurus spp.), carp (Cyprinus spp., Carassius spp.,
Ctenopharyngodon idellus, Hypophthalmichthys spp., Cirrhinus spp.,
Mylopharyngodon piceus, Catla catla, Labeo spp., Osteochilus hasselti,
Leptobarbus hoeveni, Megalobrama spp.), eels (Anguilla spp.), Nile perch
(Lates niloticus) and snakeheads (Channa spp.)
kg.
Nil
0305 53 00
--
Fish of the families Bregmacerotidae, Euclichthyidae, Gadidae,
Macrouridae,
Melanonidae,
Merlucciidae,
Moridae
and
Muraenolepididae, other than cod ( Gadus morhua, Gadus ogac, Gadus
macrocephalus)
kg.
Nil
0305 54 00
--
Herrings (Clupea harengus, Clupea pallasii), anchovies (Engraulis spp.),
sardines (Sardina pilchardus, Sardinops spp.), sardinella (Sardinella
spp.), brisling or sprats (Sprattus sprattus), mackerel (Scomber scombrus,
Scomber australasicus, Scomber japonicus), Indian mackerels
(Rastrelliger spp.), seerfishes (Scomberomorus spp.), jack and horse
mackerel (Trachurus spp.), jacks, crevalles (Caranx spp.), cobia
(Rachycentron canadum), silver pomfrets (Pampus spp.), Pacific saury
(Cololabis saira), scads (Decapterus spp.), capelin (Mallotus villosus),
Sword fish (Xiphias gladius), Kawakawa (Euthynnus affinis), bonitos
(Sarda spp.), marlins, sailfishes, spearfish (Istiophoridae)
kg.
Nil ”;
30
35
40
45
(e) for tariff item 0305 64 00 and the entries relating thereto, the following shall be substituted, namely:––
“0305 64 00
50
--
Tilapias (Oreochromis spp.), catfish (Pangasius spp., Silurus spp., Clarias
spp., Ictalurus spp.), carp (Cyprinus spp., Carassius spp.,
Ctenopharyngodon idellus, Hypophthalmichthys spp., Cirrhinus spp.,
Mylopharyngodon piceus, Catla catla, Labeo spp., Osteochilus hasselti,
Leptobarbus hoeveni, Megalobrama spp.), eels (Anguilla spp.), Nile perch
(Lates niloticus) and snakeheads (Channa spp.)
kg.
Nil ”;
138
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
(vii) in heading 0306, for tariff items 0306 19 00 to 0306 29 00 and the entries relating thereto, the following shall be
substituted, namely:––
“0306 19 00
--
Other, including flours, meals and pellets of crustaceans, fit for human
consumption
kg.
Nil
-
Live, fresh or chilled:
0306 31 00
- -
Rock lobster and other sea crawfish (Palinurus spp., Jasus spp.)
kg.
Nil
0306 32 00
- -
Lobsters ( Homarus spp.)
kg.
Nil
0306 33 00
- -
Crabs
kg.
Nil
0306 34 00
- -
Norway lobsters (Nephrops norvegicus)
kg.
Nil
0306 35 00
- -
Cold water shrimps and prawns (Pandalus spp., Crangon crangon)
kg.
Nil
0306 36 00
- -
Other shrimps and prawns
kg.
Nil
0306 39 00
- -
Other, including flours, meals and pellets of crustaceans, fit for human
consumption
kg.
Nil
5
10
15
-
Other:
0306 91 00
- -
Rock lobster and other sea crawfish (Palinurus spp., Jasus spp.)
kg.
Nil
0306 92 00
- -
Lobsters ( Homarus spp.)
kg.
Nil
0306 93 00
- -
Crabs
kg.
Nil
0306 94 00
- -
Norway lobsters (Nephrops norvegicus)
kg.
Nil
0306 95 00
- -
Shrimps and prawns
kg.
Nil
0306 99 00
- -
Other, including flours, meals and pellets of crustaceans, fit for human
consumption
kg.
Nil‘’;
20
(viii) in heading 0307,––
(a) after tariff item 0307 11 00 and the entries relating thereto, the following shall be inserted, namely:––
“0307 12 00
- -
Frozen
kg.
25
Nil ”;
(b) after tariff item 0307 21 00 and the entries relating thereto, the following shall be inserted, namely:––
“0307 22 00
- -
Frozen
kg.
Nil ”;
(c) after tariff item 0307 31 00 and the entries relating thereto, the following shall be inserted, namely:––
“0307 32 00
- -
Frozen
kg.
Nil ”;
30
(d) for tariff items 0307 39 90 to 0307 49 90 and the entries relating thereto, the following shall be substituted, namely:–
–
“0307 39 90
---
Other
kg.
Nil
-
Cuttle fish and squid:
0307 42
--
Live, fresh or chilled:
0307 42 10
---
Cuttle fish
kg.
Nil
0307 42 20
---
Squid
kg.
Nil
0307 43
--
Frozen:
0307 43 10
---
Cuttle fish
kg.
Nil
0307 43 20
---
Whole squids
kg.
Nil
0307 43 30
---
Squid tubes
kg.
Nil
0307 49
--
Other:
35
40
139
5
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
0307 49 10
---
Cuttle fish
kg.
Nil
0307 49 20
---
Whole squids
kg.
Nil
0307 49 30
---
Squid tubes
kg.
Nil
0307 49 40
---
Dried squids
kg.
Nil
0307 49 90
---
Other
kg.
Nil ”;
(e ) after tariff item 0307 51 00 and the entries relating thereto, the following shall be inserted, namely:––
“0307 52 00
10
- -
Frozen
kg.
Nil ”;
(f ) after tariff item 0307 71 00 and the entries relating thereto, the following shall be inserted, namely:––
“0307 72 00
- -
Frozen
kg.
Nil ”;
(g) for tariff items 0307 79 00 to 0307 89 00 and the entries relating thereto, the following shall be substituted,
namely:––
“0307 79 00
--
Other
kg.
Nil
-
Abalone (Haliotis Spp.)and stromboid conchs (Strombus spp.):
0307 81 00
--
Live, fresh or chilled abalone (Haliotis spp.)
kg.
Nil
0307 82 00
--
Live, fresh or chilled stromboid conchs (Strombus spp.)
kg.
Nil
0307 83 00
--
Frozen abalone (Haliotis spp.)
kg.
Nil
0307 84 00
--
Frozen stromboid conchs (Strombus spp.)
kg.
Nil
0307 87 00
--
Other abalone (Haliotis spp.)
kg.
Nil
0307 88 00
--
Other stromboid conchs (Strombus spp.)
kg.
Nil ”;
15
20
(h ) after tariff item 0307 91 00 and the entries relating thereto, the following shall be inserted, namely:––
“0307 92 00
- -
Frozen
kg.
Nil ”;
(ix) in heading 0308,––
25
(a) for the entry in column (2) occurring after the entry against heading 0308, the following shall be substituted,
namely:––
“- Sea cucumbers (Stichopus japonicus, Holothuroidea):”;
(b) after tariff item 0308 11 00 and the entries relating thereto, the following shall be inserted, namely:––
“0308 12 00
30
Frozen
kg.
Nil ”;
(c) for tariff items 0308 19 00 to 0308 21 00 and the entries relating thereto, the following shall be substituted,
namely:––
“0308 19 00
35
- -
--
Other
kg.
Nil
-
Sea urchins (Strongylocentrotus spp., Paracentrotus lividus, Loxechinus
albus, Echinus esculentus):
0308 21 00
--
Live, fresh or chilled
kg.
Nil
0308 22 00
- -
Frozen
kg.
Nil ”;
(2) in Chapter 4, in Note 4,––
(A) in clause (a), the word “or” shall be omitted;
(B) after clause (a), the following clause shall be inserted, namely:––
40
“(b) products obtained from milk by replacing one or more of its natural constituents (for example, butyric fats) by another
substance (for example, oleic fats) (heading 1901 or 2106); or”;
140
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
(C) the existing clause (b) shall be re-lettered as (c );
(3) in Chapter 5, for Note 4, the following Note shall be substituted, namely:––
“4. Throughout the Schedule, the expression “horsehair” means hair of the manes or tails of equine or bovine animals.
Heading 0511 covers, inter alia, horsehair and horsehair waste, whether or not put up as a layer with or without supporting
material.”;
5
(4) in Chapter 8, in heading 0805, for tariff item 0805 20 00 and the entries relating thereto, the following shall be substituted,
namely:––
“-
Mandarins (including tangerines and satsumas); clementines, wilkings
and similar citrus hybrids:
0805 21 00
--
Mandarins (including tangerines and satsumas)
kg.
Nil
0805 22 00
--
Clementines
kg.
Nil
0805 29 00
--
Other
kg.
Nil ”;
10
(5) in Chapter 12,––
15
(i) for heading 1211 and the entries relating thereto, the following shall be substituted, namely:––
“1211
PLANTS AND PARTS OF PLANTS (INCLUDING SEEDS AND FRUITS),
OF A KIND USED PRIMARILY IN PERFUMERY, IN PHARMACY OR
FOR INSECTICIDAL, FUNGICIDAL OR SIMILAR PURPOSE, FRESH,
CHILLED, FROZEN OR DRIED, WHETHER OR NOT CUT, CRUSHED
OR POWDERED”;
20
(ii) after tariff item 1211 40 00 and the entries relating thereto, the following shall be inserted, namely:––
“1211 50 00
-
Ephedra
kg.
”;
(6) in Chapter 13, in heading 1302, after tariff item 1302 13 00 and the entries relating thereto, the following shall be inserted,
25
namely:––
“1302 14 00
--
Of ephedra
kg.
12.5% ”;
(7) in Chapter 16,––
(i) in Sub-heading Note 1, for the words “as infant food”, the words “as food suitable for infants or young children” shall be
substituted;
(ii) in heading 1604, after tariff item 1604 17 00 and the entries relating thereto, the following shall be inserted, namely:–– 30
“1604 18 00
--
Shark fins
kg.
6% ”;
(8) in Chapter 19, for sub-heading 1901 10 and the entries relating thereto, the following shall be substituted, namely:––
“1901 10
-
Preparations suitable for infants or young children, put up for retail sale:”;
(9) in Chapter 20,––
(i) in Sub-heading Note 1, for the words “as infant food”, the words “as food suitable for infants or young children” shall be 35
substituted;
(ii) in Sub-heading Note 2, for the words “as infant food”, the words “as food suitable for infants or young children” shall be
substituted;
(10) in Chapter 21, in Sub-heading Note 3, for the words “as infant food”, the words “as food suitable for infants or young
40
children” shall be substituted ;
(11) in Chapter 22,––
(i) for sub-heading 2202 90, tariff items 2202 90 10 to 2202 90 90 and the entries relating thereto, the following shall be
substituted, namely:––
2202 91 00
“-
Other:
--
Non alcoholic beer
l
18%
45
141
5
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
2202 99
--
Other:
2202 99 10
---
Soya milk drinks, whether or not sweetened or flavoured
l
18%
2202 99 20
---
Fruit pulp or fruit juice based drink
l
6%
2202 99 30
---
Beverages containing milk
l
12.5%
2202 99 90
---
Other
l
12.5% ”;
(ii) after tariff item 2204 21 90 and the entries relating thereto, the following shall be inserted, namely:––
10
“2204 22
--
2204 22 10
---
2204 22 20
---
2204 22 90
---
- ”;
(iii) for tariff item 2206 00 00 and the entries relating thereto, the following shall be substituted, namely:––
“2206 00 00
15
-
- ”;
(12) in Chapter 27,––
(i) for Sub-heading Note 4, the following shall be substituted, namely:––
‘4. For the purposes of sub-heading 2710 12, “light oils and preparations”are those of which 90 % or more by volume
(including losses) distil at 210 °C according to the ISO 3405 method (equivalent to the ASTM D 86 method).’;
(ii) for tariff item 2707 50 00 and the entries relating thereto, the following shall be substituted, namely:––
20
“2707 50 00
-
Other aromatic hydrocarbon mixtures of which 65 % or more by volume
(including losses) distils at 250 °C by the ISO 3405 method (equivalent
to the ASTM D 86 method)
kg.
14% ”;
(13) in Chapter 28,––
(i) for Note 7, the following shall be substituted, namely:––
25
“7. Heading 2853 includes copper phosphide (phosphor copper) containing more than 15 % by weight of phosphorus.” ;
(ii) after tariff item 2811 11 00 and the entries relating thereto, the following shall be inserted, namely:––
“2811 12 00
--
Hydrogen cyanide (hydrocyanic acid )
kg.
12.5% ”;
(iii) tariff item 2811 19 10 and the entries relating thereto shall be omitted;
30
35
40
(iv) for sub-heading 2812 10, tariff items 2812 10 10 to 2812 90 00 and the entries relating thereto, the following shall be
substituted, namely:––
“-
Chlorides and chloride oxides:
2812 11 00
--
Carbonyl dichloride (phosgene)
kg.
12.5%
2812 12 00
--
Phosphorous oxychloride
kg.
12.5%
2812 13 00
--
Phosphorous trichloride
kg.
12.5%
2812 14 00
--
Phosphorous pentachloride
kg.
12.5%
2812 15 00
--
Sulphur monochloride
kg.
12.5%
2812 16 00
--
Sulphur dichloride
kg.
12.5%
2812 17 00
--
Thionyl chloride
kg.
12.5%
2812 19
--
Other:
2812 19 10
---
Sulpur oxychloride
kg.
12.5%
2812 19 20
---
Silicon tetrachloride
kg.
12.5%
2812 19 30
---
Arsenous trichloride
kg.
12.5%
142
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
2812 19 90
---
Other
kg.
12.5%
2812 90 00
-
Other
kg.
12.5% ”;
(v) the heading 2848, sub-heading 2848 00, tariff items 2848 00 10 to 2848 00 90 and the entries relating thereto shall be
omitted;
5
(vi) for heading 2853, sub-heading 2853 00, tariff items 2853 00 10 to 2853 00 99 and the entries relating thereto, the
following shall be substituted, namely:––
“2853
PHOS PHIDE S, WHET HE R OR NOT CHE MICAL LY DE FINE D,
EXCLUDING FERROPHOSPHORUS; OTHER INORGANIC
COMPOUNDS (INCLUDING DISTILLED OR CONDUCTIVITY WATER
AND WATER OF SIMILAR PURITY); LIQUID AIR (WHETHER OR NOT
RARE GASES HAVE BEEN REMOVED); COMPRESSED AIR;
AMALGAMS, OTHER THAN AMALGAMS OF PRECIOUS METALS
2853 10 00
-
Cyanogen chloride (chlorcyan)
2853 90
-
Other:
2853 90 10
---
2853 90 20
10
kg.
12.5%
Distilled or conductivity water and water of similar purity
kg.
12.5%
---
Liquid air, whether or not rare gases have been removed
kg.
12.5%
2853 90 30
---
Compressed air
kg.
Nil
2853 90 40
---
Amalgams, other than of precious metals
kg.
12.5%
2853 90 90
---
Other
kg.
12.5% ”;
15
20
(14) in Chapter 29,––
(i) after tariff item 2903 82 00 and the entries relating thereto, the following shall be inserted, namely:––
“2903 83 00
--
Mirex (ISO)
kg.
12.5% ”;
(ii) after tariff item 2903 92 29 and the entries relating thereto, the following shall be inserted, namely:––
25
“2903 93 00
--
Pentachlorobenzene (ISO)
kg.
12.5%
2903 94 00
--
Hexabromobiphenyls
kg.
12.5% ”;
(iii) in heading 2904,––
(a) after tariff item 2904 20 90 and the entries relating thereto, the following shall be inserted, namely:––
“-
Perfluorooctane sulphonic acid, its salts and perfluorooctane sulphonyl
fluoride:
2904 31 00
--
Perfluorooctane sulphonic acid
kg.
12.5%
2904 32 00
--
Ammonium perfluorooctane sulphonate
kg.
12.5%
2904 33 00
--
Lithium perfluorooctane sulphonate
kg.
12.5%
2904 34 00
--
Potassium perfluorooctane sulphonate
kg.
12.5%
2904 35 00
--
Other salts of perfluorooctane sulphonic acid
kg.
12.5%
2904 36 00
--
Perfluorooctane sulphonyl fluoride
kg.
12.5% ”;
30
35
(b) for sub-heading 2904 90, tariff items 2904 90 10 to 2904 90 90 and the entries relating thereto, the following shall be
substituted, namely:––
“-
Other:
2904 91 00
--
Trichloronitromethane (chloropicrin)
2904 99
--
Other:
2904 99 10
---
2, 5 dichloronitrobenzene
40
kg.
12.5%
kg.
12.5%
143
Tariff Item
Description of goods
Unit
(2)
(1)
5
10
Rate of Duty
(3)
(4)
2904 99 20
---
Dinitrochlorebenzene
kg.
12.5%
2904 99 30
---
Meta nitrochlorobenzene
kg.
12.5%
2904 99 40
---
Ortho nitrochlorobenzene
kg.
12.5%
2904 99 50
---
Para nitrochlorobenzene
kg.
12.5%
2904 99 60
---
2-nitrochlorotoluene
kg.
12.5%
2904 99 70
---
Sodium meta nitrochlorobenzene sulphonate
kg.
12.5%
2904 99 90
---
Other
kg.
12.5% ”;
(iv) after tariff item 2910 40 00 and the entries relating thereto, the following shall be inserted, namely:––
“2910 50 00
-
Endrin (ISO)
kg.
12.5% ”;
(v) in heading 2914,––
(a) after tariff item 2914 61 00 and the entries relating thereto, the following shall be inserted, namely:––
“2914 62 00
15
20
--
Coenzyme Q10 (ubidecarenone (INN))
kg.
12.5% ”;
(b) for sub-heading 2914 70, tariff items 2914 70 10 to 2914 70 90 and the entries relating thereto, the following shall be
substituted, namely:––
“-
Halogenated, sulphonated, nitrated or nitrosated derivatives:
2914 71 00
--
Chlordecone (ISO)
2914 79
--
Other:
2914 79 10
---
2914 79 20
2914 79 90
kg.
12.5%
1-chloro anthraquinone
kg.
12.5%
---
Musk ketone
kg.
12.5%
---
Other
kg.
12.5% ”;
(vi) after tariff item 2918 16 90 and the entries relating thereto, the following shall be inserted, namely:––
“2918 17 00
25
30
35
40
--
2, 2-Diphenyl-2-hydroxyacetic acid (benzilic acid)
kg.
12.5% ”;
(vii) for sub-heading 2920 90, tariff items 2920 90 10 to 2920 90 44 and the entries relating thereto, the following shall be
substituted, namely:––
“-
Phosphite esters and their salts; their halogenated, sulphonated, nitrated
or nitrosated derivatives:
2920 21 00
--
Dimethyl phosphite
kg.
12.5%
2920 22 00
--
Diethyl phosphite
kg.
12.5%
2920 23 00
--
Trimethyl phosphite
kg.
12.5%
2920 24 00
--
Triethyl phosphite
kg.
12.5%
2920 29
--
Other:
2920 29 10
---
Dimethyl sulphate
kg.
12.5%
2920 29 20
---
Diethyl sulphate
kg.
12.5%
2920 29 30
---
Tris (2, 3 Dibromopropyl) phosphate
kg.
12.5%
2920 29 90
---
Other
kg.
12.5%
2920 30 00
-
Endosulfan (ISO)
kg.
12.5% ”;
(viii) for sub-heading 2921 19, tariff items 2921 19 11 to 2921 19 90 and the entries relating thereto, the following shall be
substituted, namely:––
“2921 12 00
--
2-(N, N-Dimethylamino)ethylchloride hydrochloride
kg.
12.5%
144
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
2921 13 00
--
2-(N, N-Diethylamino)ethylchloride hydrochloride
kg.
12.5%
2921 14 00
--
2-(N, N-Diisopropylamino)ethylchloride hydrochloride
kg.
12.5%
2921 19
--
Other:
2921 19 10
---
2-Chloro N, N-Diisopropyl ethylamine
kg.
12.5%
2921 19 20
---
2-Chloro N, N-Dimethyl ethanamine
kg.
12.5%
2921 19 90
---
Other
kg.
12.5% ”;
5
(ix) for sub-heading 2922 12, tariff items 2922 12 10 to 2922 12 90 and the entries relating thereto, the following shall be
substituted, namely:––
10
“2922 12 00
--
Diethanolamine and its salts
kg.
12.5% ”;
(x) for sub-heading 2922 13, tariff items 2922 13 10 to 2922 13 90, tariff item 2922 14 00, sub-heading 2922 19, tariff items
2922 19 40 to 2922 19 90 and the entries relating thereto, the following shall be substituted, namely:––
“2922 14 00
--
Dextropropoxyphene (INN) and its salts
kg.
12.5%
2922 15 00
--
Triethanolamine
kg.
12.5%
2922 16 00
--
Diethanolammonium perfluorooctane sulphonate
kg.
12.5%
2922 17
--
Methyldiethanolamine and ethyldiethanolamine:
2922 17 10
---
Methyldiethanolamine
kg.
12.5%
2922 17 20
---
Ethyldiethanolamine
kg.
12.5%
2922 18 00
--
2-(N, N-Diisopropylamino)ethanol
kg.
12.5%
2922 19
--
Other:
2922 19 10
---
2-Hydroxy N, N-Diisopropyl ethylamine
kg.
12.5%
2922 19 90
---
Other
kg.
12.5% ”;
15
20
(xi) after tariff item 2923 20 90 and the entries relating thereto, the following shall be inserted, namely:––
“2923 30 00
-
Tetraethylammonium perfluorooctane sulphonate
kg.
12.5%
2923 40 00
-
Didecyldimethylammonium perfluorooctane sulphonate
kg.
12.5% ”;
25
(xii) after tariff item 2924 24 00 and the entries relating thereto, the following shall be inserted, namely:––
“2924 25 00
--
Alachlor (ISO)
kg.
12.5% ”;
(xiii) after tariff item 2926 30 00 and the entries relating thereto, the following shall be inserted, namely:––
“2926 40 00
-
Alpha-phenylacetoacetonitrile
kg.
12.5% ”;
30
(xiv) for tariff item 2930 50 00 and the entries relating thereto, the following shall be substituted, namely:––
“2930 60 00
-
2-(N, N-Diethylamino)ethanethiol
kg.
12.5%
2930 70 00
-
Bis(2-hydroxyethyl)sulfide (thiodiglycol (INN))
kg.
12.5%
2930 80 00
-
Aldicarb (ISO), captafol (ISO) and methamidophos (ISO)
kg.
12.5% ”;
(xv) after tariff item 2931 20 00 and the entries relating thereto, the following shall be inserted, namely:––
35
“-
Other organo-phosphorous derivatives:
2931 31 00
--
Dimethyl methylphosphonate
kg.
12.5%
2931 32 00
--
Dimethyl propylphosphonate
kg.
12.5%
2931 33 00
--
Diethyl ethylphosphonate
kg.
12.5%
2931 34 00
--
Sodium 3-(trihydroxysilyl)propyl methylphosphonate
kg.
12.5%
2931 35 00
--
2, 4, 6-Tripropyl-1, 3, 5, 2, 4, 6-trioxatriphosphinane 2, 4, 6-trioxide
kg.
12.5%
40
145
5
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
2931 36 00
--
(5-Ethyl-2-methyl-2-oxido-1, 3, 2-dioxaphosphinan-5-yl)methyl methyl
methylphosphonate
kg.
12.5%
2931 37 00
--
Bis[(5-ethyl-2-methyl-2-oxido-1, 3, 2-dioxaphosphinan-5-yl)methyl]
methylphosphonate
kg.
12.5%
2931 38 00
--
Salt of methylphosphonic acid and (aminoiminomethyl)urea (1: 1)
kg.
12.5%
2931 39 00
--
Other
kg.
12.5% ”;
(xvi) after tariff item 2932 13 00 and the entries relating thereto, the following shall be inserted, namely:––
“2932 14 00
--
Sucralose
kg.
12.5% ”;
(xvii) after tariff item 2933 91 00 and the entries relating thereto, the following shall be inserted, namely:––
10
“2933 92 00
--
Azinphos-methyl (ISO)
kg.
12.5% ”;
(xviii) for heading 2935, sub-heading 2935 00, tariff items 2935 00 11 to 2935 00 90 and the entries relating thereto, the
following shall be substituted, namely:––
“2935
15
2935 10 00
-
N-Methylperfluorooctane sulphonamide
kg.
12.5%
2935 20 00
-
N-Ethylperfluorooctane sulphonamide
kg.
12.5%
2935 30 00
-
N-Ethyl-N-(2-hydroxyethyl) perfluorooctane sulphonamide
kg.
12.5%
2935 40 00
-
N-(2-Hydroxyethyl)-N-methylperfluorooctane sulphonamide
kg.
12.5%
2935 50 00
-
Other perfluorooctane sulphonamides
kg.
12.5%
2935 90
-
Other:
---
Sulphamethoxazole, sulphafurazole, sulphadiazine, sulphadimidine,
sulphacetamide:
2935 90 11
----
Sulphamethoxazole
kg.
12.5%
2935 90 12
----
Sulphafurazole
kg.
12.5%
2935 90 13
----
Sulphadiazine
kg.
12.5%
2935 90 14
----
Sulphadimidine
kg.
12.5%
2935 90 15
----
Sulphacetamide
kg.
12.5%
---
Sulphamethoxypyridarine, sulphamethiazole, sulphamoxole, sulphamide:
2935 90 21
----
Sulphamethoxypyridarine
kg.
12.5%
2935 90 22
----
Sulphamethiazole
kg.
12.5%
2935 90 23
----
Sulphamoxole
kg.
12.5%
2935 90 24
----
Sulphamide
kg.
12.5%
2935 90 90
---
Other
kg.
12.5% ”;
20
25
30
SULPHONAMIDES
(xix) for the tariff item 2937 31 00 and the entries relating thereto, the following shall be substituted, namely:––
“2937 31 00
35
--
Epinephrine
kg.
12.5% ”;
(xx) in the entry under column (2) occurring after tariff item 2937 90 90 and the entries relating thereto, the word “VEGETABLE”
shall be omitted;
(xxi) for heading 2939 and the entries relating thereto, the following shall be substituted, namely:––
“2939
40
ALKALOIDS, NATURAL OR REPRODUCED BY SYNTHESIS, AND THEIR
SALTS, ETHERS, ESTERS AND OTHER DERIVATIVES”;
(xxii) for tariff items 2939 69 00 to 2939 99 00 and the entries relating thereto, the following shall be substituted,
namely:––
146
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
kg.
12.5%
“2939 69 00
--
Other
-
Other, of vegetal origin:
2939 71 00
--
Cocaine, ecgonine, levometamfetamine, metamfetamine (INN),
metamfetamine racemate; salts, esters and other derivatives thereof
kg.
12.5%
2939 79 00
--
Other
kg.
12.5%
2939 80 00
-
Other
kg.
12.5% ”;
5
(15) in Chapter 30,––
(i) after Note 4, the following shall be inserted, namely:––
10
“Sub-heading Notes:
1.
For the purposes of sub-headings 3002 13 and 3002 14, the following are to be treated:
(a) as unmixed products, pure products, whether or not containing impurities;
(b) as products which have been mixed:
(1) the products mentioned in (a) above dissolved in water or in other solvents;
15
(2) the products mentioned in (a) and (b) (1) above with an added stabiliser necessary for their preservation or
transport; and
(3) the products mentioned in (a), (b) (1) and (b) (2) above with any other additive.
2. Sub-headings 3003 60 and 3004 60 cover medicaments containing artemisinin (INN) for oral ingestion combined
with other pharmaceutical active ingredients, or containing any of the following active principles, whether or not combined 20
with other pharmaceutical active ingredients: amodiaquine (INN); artelinic acid or its salts; artenimol (INN); artemotil
(INN); artemether (INN); artesunate (INN); chloroquine (INN); dihydroartemisinin (INN); lumefantrine (INN); mefloquine
(INN); piperaquine (INN); pyrimethamine (INN) or sulfadoxine (INN).”;
(ii) for sub-heading 3002 10, tariff items 3002 10 11 to 3002 10 99 and the entries relating thereto, the following shall be
substituted, namely:––
25
“-
Antisera, other blood fractions and immunological products, whether or
not modified or obtained by biotechnological processes:
3002 11 00
--
Malaria diagnostic test kits
3002 12
--
Antisera and other blood fractions:
3002 12 10
---
3002 12 20
kg.
6%
For diphtheria
kg.
Nil
---
For tetanus
kg.
Nil
3002 12 30
---
For rabies
kg.
Nil
3002 12 40
---
For snake venom
kg.
Nil
3002 12 90
---
Other
kg.
Nil
3002 13
--
Immunological products, unmixed, not put up in measured doses or in
forms or packings for retail sale:
3002 13 10
---
Immunological products, unmixed, not put up in measured doses or in
forms or packings for retail sale
3002 14
--
Immunological products, mixed, not put up in measured doses or in forms
or packings for retail sale:
30
35
kg.
6%
40
3002 14 10
---
Immunological products, mixed, not put up in measured doses or in forms
or packings for retail sale
kg.
6%
3002 15 00
--
Immunological products, put up in measured doses or in forms or packings
for retail sale
kg.
6%
3002 19 00
--
Other
kg.
6% ”;
45
147
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
(iii) for tariff items 3003 20 00 to 3003 40 00 and the entries relating thereto, the following shall be substituted, namely:––
“3003 20 00
-
Other, containing antibiotics
kg.
6%
-
Other, containing hormones or other products of heading 2937:
3003 31 00
--
Containing insulin
kg.
6%
3003 39 00
--
Other
kg.
6%
-
Other, containing alkaloids or derivatives thereof:
3003 41 00
--
Containing ephedrine or its salts
kg.
6%
3003 42 00
--
Containing pseudoephedrine (INN) or its salts
kg.
6%
3003 43 00
--
Containing norephedrine or its salts
kg.
6%
3003 49 00
--
Other
kg.
6%
3003 60 00
-
Other, containing antimalarial active principles described in Sub-heading
Note 2 to this Chapter
kg.
6% ”;
5
10
15
(iv) in heading 3004,––
(a) for sub-heading 3004 20 and the entries relating thereto, the following shall be substituted, namely:––
“3004 20
--
Other, containing antibiotics:”;
(b) for tariff item 3004 20 99, sub-heading 3004 31 and the entries relating thereto, the following shall be substituted,
namely:––
20
“3004 20 99
3004 31
----
Other
-
Other, containing hormones and other products of heading 2937:
--
Containing insulin:”;
kg.
6%
(c) for sub-heading 3004 40, tariff items 3004 40 10 to 3004 40 90 and the entries relating thereto, the following shall be
substituted, namely:––
“-
Other, containing alkaloids or derivatives thereof:
3004 41 00
--
Containing ephedrine or its salts
kg.
6%
3004 42 00
--
Containing pseudoephedrine (INN) or its salts
kg.
6%
3004 43 00
--
Containing norephedrine or its salts
kg.
6%
3004 49
--
Other:
3004 49 10
---
Atropin and salts thereof
kg.
6%
3004 49 20
---
Caffein and salts thereof
kg.
6%
3004 49 30
---
Codeine and derivatives, with or without ephidrine hydrochloride
kg.
6%
3004 49 40
---
Ergot preparations, ergotamine and salts thereof
kg.
6%
3004 49 50
---
Papavarine hydrochloride
kg.
6%
3004 49 60
---
Bromohexin and salbutamol
kg.
6%
3004 49 70
---
Theophylline and salts thereof
kg.
6%
3004 49 90
---
Other
kg.
6% ”;
25
30
35
(d) for sub-heading 3004 50 and the entries relating thereto, the following shall be substituted, namely:––
“3004 50
40
-
Other, containing vitamins or other products of heading 2936:”;
(e) after tariff item 3004 50 90 and the entries relating thereto, the following shall be inserted, namely:––
“3004 60 00
-
Other, containing antimalarial active principles described in Sub-heading
Note 2 to this Chapter
kg.
6% ”;
148
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
(16) in Chapter 31, in heading 3103, for tariff item 3103 10 00 and the entries relating thereto, the following shall be substituted,
namely:––
“-
Superphosphates:
3103 11 00
--
Containing by weight 35 % or more of diphosphorus pentaoxide (P 2O5)
kg.
12.5%
3103 19 00
--
Other
kg.
12.5% ”;
5
(17) in Chapter 37, in heading 3705, for tariff item 3705 10 00, sub-heading 3705 90, tariff items 3705 90 10 and 3705 90 90
and the entries relating thereto, the following shall be substituted, namely:––
“3705 00 00
-
PHOTOGRAPHIC PLATES AND FILM, EXPOSED AND DEVELOPED,
OTHER THAN CINEMATOGRAPHIC FILM
kg.
Nil ”;
10
(18) in Chapter 38,––
(i) for Sub-heading Notes 1 and 2, the following shall be substituted, namely:––
‘ Sub-heading Notes:
1. Sub-headings 3808 52 and 3808 59 cover only goods of heading 3808, containing one or more of the following 15
substances: alachlor (ISO); aldicarb (ISO); aldrin (ISO); azinphos-methyl (ISO); binapacryl (ISO); camphechlor (ISO)
(toxaphene); captafol (ISO); chlordane (ISO); chlordimeform (ISO); chlorobenzilate (ISO); DDT (ISO) (clofenotane (INN),
1, 1, 1-trichloro-2, 2-bis(p-chlorophenyl)ethane); dieldrin (ISO, INN); 4, 6- dinitro-o-cresol (DNOC (ISO)) or its salts;
dinoseb (ISO), its salts or its esters; endosulfan (ISO); ethylene dibromide (ISO) (1, 2-dibromoethane); ethylene dichloride
(ISO) (1, 2-dichloroethane); fluoroacetamide (ISO); heptachlor (ISO); hexachlorobenzene (ISO); 1, 2, 3, 4, 5, 6- 20
hexachlorocyclohexane (HCH (ISO)), including lindane (ISO, INN); mercury compounds; methamidophos (ISO);
monocrotophos (ISO); oxirane (ethylene oxide); parathion (ISO); parathion-methyl (ISO) (methylparathion); penta- and
octabromodiphenyl ethers; pentachlorophenol (ISO), its salts or its esters; perfluorooctane sulphonic acid and its salts;
perfluorooctane sulphonamides; perfluorooctane sulphonyl fluoride; phosphamidon (ISO); 2, 4, 5-T (ISO) (2, 4, 5trichlorophenoxyacetic acid), its salts or its esters; tributyltin compounds.
25
Sub-heading 3808 59 also covers dustable powder formulations containing a mixture of benomyl (ISO), carbofuran
(ISO) and thiram (ISO).
2. Sub-headings 3808 61 to 3808 69 cover only goods of heading 3808, containing alpha-cypermethrin (ISO),
bendiocarb (ISO), bifenthrin (ISO), chlorfenapyr (ISO), cyfluthrin (ISO), deltamethrin (INN, ISO), etofenprox (INN), fenitrothion
30
(ISO), lambda-cyhalothrin (ISO), malathion (ISO), pirimiphos-methyl (ISO) or propoxur (ISO).
3. Sub-headings 3824 81 to 3824 88 cover only mixtures and preparations containing one or more of the following
substances: oxirane (ethylene oxide), polybrominated biphenyls (PBBs), polychlorinated biphenyls (PCBs), polychlorinated
terphenyls (PCTs), tris(2, 3-dibromopropyl) phosphate, aldrin (ISO), camphechlor (ISO) (toxaphene), chlordane (ISO),
chlordecone (ISO), DDT (ISO) (clofenotane (INN), 1, 1, 1-trichloro-2, 2-bis(pchlorophenyl)ethane), dieldrin (ISO, INN),
endosulfan (ISO), endrin (ISO), heptachlor (ISO), mirex (ISO), 1, 2, 3, 4, 5, 6-hexachlorocyclohexane (HCH (ISO)), 35
including lindane (ISO, INN), pentachlorobenzene (ISO), hexachlorobenzene (ISO), perfluorooctane sulphonic acid, its
salts, perfluorooctane sulphonamides, perfluorooctane sulphonyl fluoride or tetra-, penta-, hexa-, hepta- or
octabromodiphenyl ethers.
4. For the purposes of tariff items 3825 41 00 and 3825 49 00, “waste organic solvents”are wastes containing mainly
organic solvents, not fit for further use as presented as primary products, whether or not intended for recovery of 40
solvents.’;
(ii) for sub-heading 3808 50 and tariff item 3808 50 00 and the entries relating thereto, the following shall be substituted,
namely:––
“-
Goods specified in Sub-heading Note 1 to this Chapter:
3808 52 00
--
DDT (ISO) (clofenotane (INN)), in packings of a net weight content not
exceeding 300 g
kg.
12.5%
3808 59 00
--
Other
kg.
12.5%
-
Goods specified in Sub-heading Note 2 to this Chapter:
3808 61 00
--
In packings of a net weight content not exceeding 300 g
kg.
12.5%
3808 62 00
--
In packings of a net weight content exceeding 300g but not exceeding 7.5 kg.
kg.
12.5%
3808 69 00
--
Other
kg.
12.5% ”;
45
50
149
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
(iii) for sub-heading 3812 30 and tariff items 3812 30 10 to 3812 30 90 and the entries relating thereto, the following shall
be substituted, namely:––
“-
Anti-oxidising preparations and other compound stabilizers for rubber or plastics:
3812 31 00
--
Mixtures of oligomers of 2, 2, 4-trimethyl-1, 2-dihydroquinoline (TMQ)
3812 39
--
Other:
3812 39 10
---
3812 39 20
5
10
kg.
12.5%
Anti-oxidants for rubber
kg.
12.5%
---
Softeners for rubber
kg.
12.5%
3812 39 30
---
Vulcanizing agents for rubber
kg.
12.5%
3812 39 90
---
Other
kg.
12.5% ”;
(iv) for tariff items 3824 79 00 to 3824 83 00, sub-heading 3824 90, tariff items 3824 90 11 to 3824 90 90 and the entries
relating thereto, the following shall be substituted, namely:––
“3824 79 00
--
Other
kg.
12.5%
-
Goods specified in Sub-heading Note 3 to this Chapter:
3824 81 00
--
Containing oxirane (ethylene oxide)
kg.
12.5%
3824 82 00
--
Containing polychlorinated biphenyls (PCBs), polychlorinated terphenyls
(PCTs) or polybrominated biphenyls (PBBs)
kg.
12.5%
3824 83 00
--
Containing tris(2, 3-dibromopropyl) phosphate
kg.
12.5%
3824 84 00
--
Containing aldrin (ISO), camphechlor (ISO) (toxaphene), chlordane (ISO),
chlordecone (ISO), DDT (ISO) (clofenotane (INN), 1, 1, 1- trichloro-2, 2bis(p-chlorophenyl)ethane), dieldrin (ISO, INN), endosulfan (ISO), endrin
(ISO), heptachlor (ISO) or mirex (ISO)
kg.
12.5%
3824 85 00
--
Containing 1, 2, 3, 4, 5, 6-hexachlorocyclohexane (HCH (ISO)), including
lindane (ISO, INN)
kg.
12.5%
3824 86 00
--
Containing pentachlorobenzene (ISO) or hexachlorobenzene (ISO)
kg.
12.5%
3824 87 00
--
Containing perfluorooctane sulphonic acid, its salts, perfluorooctane
sulphonamides, or perfluorooctane sulphonyl fluoride
kg.
12.5%
3824 88 00
--
Containing tetra-, penta-, hexa- hepta- or octabromodiphenyl ethers
kg.
12.5%
3824 91 00
--
Mixtures and preparations consisting mainly of (5-ethyl-2-methyl-2oxido-1, 3, 2-dioxaphosphinan-5-yl) methyl methyl methylphosphonate
and bis[(5-ethyl-2-methyl-2-oxido-1, 3, 2- dioxaphosphinan-5-yl)methyl]
methylphosphonate:
3824 99
--
Other:
---
Ammoniacal gas liquors and spent oxide produced in coal gas purification,
case hardening compound, heat transfer salts; mixture of diphenyl and
diphenyl oxide as heat transfer medium, mixed polyethylene glycols;
salts for curing or salting, surface tension reducing agents:
3824 99 11
----
Ammoniacal gas liquors and spent oxide produced in coal gas purification
kg.
12.5%
3824 99 12
----
Case hardening compound
kg.
12.5%
3824 99 13
----
Heat transfer salts
kg.
12.5%
3824 99 14
----
Mixture of diphenyl and diphenyl oxide as heat transfer medium
kg.
12.5%
3824 99 15
----
Mixed polyethylene glycols
kg.
12.5%
3824 99 16
----
Salts for curing or salting
kg.
12.5%
3824 99 17
----
Surface tension reducing agents
kg.
12.5%
15
20
25
30
35
40
45
150
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
---
Electroplating salts; water treatment chemicals; ion exchanger, correcting
fluid; precipitated silica and silica gel; oil well chemical:
3824 99 21
----
Electroplating salts
kg.
12.5%
3824 99 22
----
Water treatment chemicals; ion exchanger (INN) such as permiutits, zero-lites
kg.
12.5%
3824 99 23
----
Gramaphone records making material
kg.
12.5%
3824 99 24
----
Correcting fluid
kg.
12.5%
3824 99 25
----
Precipitated silica and silica gel
kg.
12.5%
3824 99 26
----
Oil well chemical
kg.
12.5%
---
Mixture containing perhalogenated derivatives of acyclic hydrocarbons
containing two or more different halogens other than chlorine and fluorine;
ferrite powder; capacitor fluids - PCB type; dipping oil for treatment of
grapes; Poly brominated biphenyls, poly chlorinated biphenyls, Poly
chlorinated terphenyls, crocidolite; goods of a kind known as “hazardous
waste”; phosphogypsum:
5
10
15
3824 99 31
----
Mixture containing perhalogenated derivatives of acyclic hydrocarbons
containing two or more different halogens other than chlorine and fluorine
kg.
12.5%
3824 99 32
----
Ferrite powder
kg.
12.5%
3824 99 33
----
Capacitor fluids - PCB type
kg.
12.5%
3824 99 34
----
Dipping oil for treatment of grapes
kg.
12.5%
3824 99 35
----
Poly brominated biphenyls, poly chlorinated biphenyls, Poly chlorinated
terphenyls, crocidolite
kg.
12.5%
3824 99 36
----
Goods of a kind known as “hazardous waste”
kg.
12.5%
3824 99 37
----
Phosphogypsum
kg.
12.5%
3824 99 38
----
Phosphonic Acid, Methyl-compound with (aminoimino methyl) urea (1: 1)
kg.
12.5%
3824 99 90
---
Other
kg.
12.5% ”;
20
25
(19) in Chapter 39,––
(i) in Note 2, in clause (z), after the words “propelling pencils”, the words “, and monopods, bipods, tripods and similar
30
articles”shall be inserted;
(ii) in Sub-heading Note 1, in clause (a), in sub-clause (2), after the figures “3901 30”, the figures “3901 40,” shall be
inserted;
(iii) in heading 3901, after tariff item 3901 30 00 and the entries relating thereto, the following shall be inserted, namely:––
“3901 40 00
-
Ethylene-alpha-olefin copolymers, having a specific gravity of less than 0.94
kg.
12.5% ”;
(iv) in heading 3907, for sub-heading 3907 60 and tariff items 3907 60 10 to 3907 60 90 and the entries relating thereto, the 35
following shall be substituted, namely:––
“-
Poly(ethylene terephthalate):
3907 61 00
--
Having a viscosity number of 78 ml/g or higher
3907 69
--
Other:
3907 69 10
---
3907 69 20
3907 69 90
kg.
12.5%
Having a viscosity number less than 78 ml/g but not less than 72 ml/g
kg.
12.5%
---
Having a viscosity number less than 72 ml/g but not less than 64 ml/g
kg.
12.5%
---
Other
kg.
12.5% ”;
40
(v) for sub-heading 3909 30 and tariff items 3909 30 10 to 3909 30 90 and the entries relating thereto, the following shall be
substituted, namely:––
“-
Other amino-resins:
45
151
5
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
kg.
12.5%
3909 31 00
--
Poly(methylene phenyl isocyanate) (crude MDI, polymeric MDI)
3909 39
--
Other:
3909 39 10
---
Poly(phenylene oxide)
kg.
12.5%
3909 39 90
---
Other
kg.
12.5% ”;
(20) in Chapter 40, in heading 4011, for tariff items 4011 50 90 to 4011 99 00 and the entries relating thereto, the following shall
be substituted, namely:––
10
“4011 50 90
---
Other
u
12.5%
4011 70 00
-
Of a kind used on agricultural or forestry vehicles and machines
u
12.5%
4011 80 00
-
Of a kind used on construction, mining or industrial handling vehicles
and machines
u
12.5%
4011 90 00
-
Other
u
12.5% ”;
(21) in Chapter 42,––
15
(i) in heading 4202,––
(a) for sub-heading 4202 22 and the entries relating thereto, the following shall be substituted, namely:––
“4202 22
--
With outer surface of sheeting of plastics or of textile materials: ”;
(b) for sub-heading 4202 32 and the entries relating thereto, the following shall be substituted, namely:––
“4202 32
20
--
With outer surface of sheeting of plastics or of textile materials: ”;
(c) for tariff item 4202 92 00 and the entries relating thereto, the following shall be substituted, namely:––
“4202 92 00
--
With outer surface of sheeting of plastics or of textile materials
u
12.5% ”;
(22) in Chapter 44,––
(i) in Note 1, in clause (q), for the word “pencils”, the words “pencils, and monopods, bipods, tripods and similar articles” shall
be substituted;
25
(ii) the Sub-heading Note 2 shall be omitted;
(iii) in heading 4401,––
(a) for sub-heading 4401 10, tariff items 4401 10 10, 4401 10 90 and the entries relating thereto, the following shall be
substituted, namely:––
30
35
“-
Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms:
4401 11
--
Coniferous:
4401 11 10
---
In logs
mt
12.5%
4401 11 90
---
Other
mt
12.5%
4401 12
--
Non-coniferous:
4401 12 10
---
In logs
mt
12.5%
4401 12 90
---
Other
mt
12.5% ”;
(b) for tariff items 4401 22 00 and 4401 31 00 and the entries relating thereto, the following shall be substituted,
namely:––
“4401 22 00
--
Non-coniferous
-
Sawdust and wood waste and scrap, agglomerated, in logs, briquettes,
pellets or similar forms:
--
Wood pellets
40
4401 31 00
mt
12.5%
mt
12.5% ”;
(c) after tariff item 4401 39 00 and the entries relating thereto, the following shall be inserted, namely:––
“4401 40 00
-
Sawdust and wood waste and scrap, not agglomerated
mt
12.5% ”;
152
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
(iv) in heading 4403,––
(a) for tariff item 4403 10 00, sub-heading 4403 20 and tariff items 4403 20 10 to 4403 41 00 and the entries relating
thereto, the following shall be substituted, namely:––
4403 11 00
4403 12 00
“-
Treated with paint, stains, creosote or other preservatives:
--
Coniferous
m3
12.5%
3
12.5%
--
Non-coniferous
-
Other, coniferous:
4403 21
--
Of pine (Pinus spp.), of which any cross-sectional dimension is 15 cm or more:
4403 21 10
---
Saw logs and veneer logs
m3
12.5%
4403 21 20
---
Poles, pilings and posts
m3
12.5%
4403 21 90
---
Other
m3
12.5%
4403 22
--
Of pine (Pinus spp.), other:
4403 22 10
---
Saw logs and veneer logs
m3
12.5%
m
3
12.5%
m
3
12.5%
m3
12.5%
3
12.5%
4403 22 20
---
Poles, pilings and posts
4403 22 90
---
Other
4403 23
--
Of fir (Abies spp.) and spruce (Picea spp.), of which any cross-sectional
dimension is 15 cm or more:
4403 23 10
---
Saw logs and veneer logs
m
10
4403 23 20
---
Poles, pilings and posts
m
4403 23 90
---
Other
m3
12.5%
4403 24
--
Of fir (Abies spp.) and spruce (Picea spp.), other:
4403 24 10
---
Saw logs and veneer logs
m3
12.5%
4403 24 20
---
Poles, pilings and posts
m3
12.5%
3
12.5%
4403 24 90
---
Other
4403 25
--
Other, of which any cross-sectional dimension is 15 cm or more:
4403 25 10
---
Saw logs and veneer logs
m3
12.5%
4403 25 20
---
Poles, pilings and posts
m3
12.5%
4403 25 90
---
Other
m3
12.5%
4403 26
--
Other:
4403 26 10
---
Saw logs and veneer logs
m3
12.5%
3
m
12.5%
12.5%
4403 26 20
---
Poles, pilings and posts
m
4403 26 90
---
Other
m3
-
Other, of tropical wood:
--
Dark red meranti, light red meranti and meranti bakau
4403 41 00
5
15
20
25
30
35
m3
12.5% ”;
(b) for tariff item 4403 92 00 and the entries relating thereto, the following shall be substituted, namely:––
“4403 93 00
--
Of beech (Fagus spp.), of which any cross-sectional dimension is 15 cm or more
m3
12.5%
4403 94 00
--
Of beech (Fagus spp.), other
m3
12.5%
3
12.5%
12.5%
4403 95 00
--
Of birch (Betula spp.), of which any cross-sectional dimension is 15 cm or more
m
4403 96 00
--
Of birch (Betula spp.), other
m3
40
153
5
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
12.5%
12.5% ”;
4403 97 00
--
Of poplar and aspen (Populus spp.)
m
4403 98 00
--
Of eucalyptus (Eucalyptus spp.)
m3
(c) for tariff item 4403 99 19 to 4403 99 21 and the entries relating thereto, the following shall be substituted, namely:––
“4403 99 19
10
3
4403 99 21
----
Rose Wood (Dalbergea Latifolio )
---
Sal (Chorea robusta, Sandalwood (Santalum album), Semul (Bombax
ceiba), Walnut wood (Juglans binata), Anjam (Hardwickia binata), Sisso
(Dalbergia sisso) and White cedar (Dysozylum spp) and the like:
----
Sal (Chorea robusta)
m3
12.5%
m3
12.5% ”;
(d) the tariff item 4403 99 26 and the entries relating thereto shall be omitted;
(e) for tariff item 4403 99 29 and the entries relating thereto, the following shall be substituted, namely:––
“4403 99 90
15
20
---
Other
m3
12.5% ”;
(v) in heading 4406, for tariff items 4406 10 00 and 4406 90 00 and the entries relating thereto, the following shall be
substituted, namely:––
“-
Not impregnated:
4406 11 00
--
Coniferous
m3
12.5%
4406 12 00
--
Non-coniferous
m3
12.5%
-
Other:
4406 91 00
--
Coniferous
m3
12.5%
4406 92 00
--
Non-coniferous
m3
12.5% ”;
(vi) in heading 4407,––
(a) for sub-heading 4407 10, tariff items 4407 10 10 to 4407 21 00 and the entries relating thereto, the following shall be
substituted, namely:––
“-
Coniferous:
4407 11 00
--
Of pine (Pinus spp.)
m3
Nil
4407 12 00
--
Of fir (Abies spp.) and Spruce ( Picea spp.)
m3
Nil
4407 19
--
Other:
4407 19 10
---
Douglas fir (Pseudotsuga menziesii)
m3
Nil
4407 19 90
---
Other
m3
Nil
-
Of tropical wood:
--
Mahogany (Swietenia spp.)
m3
Nil ”;
25
30
4407 21 00
(b) after tariff item 4407 95 00 and the entries relating thereto, the following shall be inserted, namely:––
35
“4407 96 00
--
Of birch (Betula spp.)
m3
Nil
4407 97 00
--
Of poplar and aspen (Populus spp.)
m3
Nil ”;
(c) tariff item 4407 99 10 and the entries relating thereto shall be omitted;
(vii) in heading 4408,––
(a) for tariff items 4408 10 90 to sub-heading 4408 31, and the entries relating thereto, the following shall be substituted,
namely:––
40
“4408 10 90
4408 31
---
Other
-
Of tropical wood:
--
Of Dark red meranti, Light red meranti, Meranti bakau:”;
kg.
12.5%
154
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
(b) after tariff item 4409 21 00 and the entries relating thereto, the following shall be inserted, namely:––
“4409 22 00
--
Of tropical wood
kg.
12.5% ”;
(viii) in heading 4412,––
5
(a) for sub-heading 4412 31 and the entries relating thereto, the following shall be substituted, namely:––
“4412 31
--
With at least one outer ply of tropical wood:”;
(b) for sub-heading 4412 32, tariff items 4412 32 10 to 4412 32 90, sub-heading 4412 39, tariff items 4412 39 10 to 4412
39 90 and the entries relating thereto, the following shall be substituted, namely:––
“4412 33
4412 33 10
--
---
Other, with at least one outer ply of non-coniferous wood of the species
alder (Alnus spp.), ash (Fraxinus spp.), beech (Fagus spp.), birch (Betula
spp.), cherry (Prunus spp.), chestnut (Castanea spp.), elm (Ulmus spp.),
eucalyptus (Eucalyptus spp.), hickory (Carya spp.), horse chestnut
(Aesculus spp.), lime (Tilia spp.), maple (Acer spp.), oak (Quercus spp.),
plane tree (Platanus spp.), poplar and aspen (Populus spp.), robinia
(Robinia spp.), tulipwood (Liriodendron spp.) or walnut (Juglans spp.):
Decorative plywood
10
15
m3
12.5%
3
12.5%
4412 33 20
---
Tea chest panels, shooks whether or not packed in sets
m
4412 33 30
---
Marine and aircraft plywood
m3
12.5%
4412 33 40
---
Cutting and trimmings of plywood of width not exceeding 5 cm
m3
12.5%
4412 33 90
---
Other
m3
12.5%
4412 34
--
Other, with at least one outer ply of non-coniferous wood not specified
under sub-heading 4412 33:
4412 34 10
---
Decorative plywood
m3
12.5%
4412 34 20
---
Tea chest panels, shooks whether or not packed in sets
m3
12.5%
m
3
12.5%
3
12.5%
4412 34 30
---
Marine and aircraft plywood
4412 34 40
---
Cutting and trimmings of plywood of width not exceeding 5 cm
m
4412 34 90
---
Other
m3
12.5%
4412 39
--
Other, with both outer plies of coniferous wood:
4412 39 10
---
Decorative plywood
m3
12.5%
4412 39 20
---
Tea chest panels, shooks whether or not packed in sets
m3
12.5%
4412 39 30
---
Marine and aircraft plywood
m3
12.5%
4412 39 40
---
Cutting and trimmings of plywood of width not exceeding 5 cm
m3
12.5%
3
12.5% ”;
4412 39 90
---
Other
m
20
25
30
(ix) in heading 4418, for tariff items 4418 71 00 to 4418 90 00 and the entries relating thereto, the following shall be 35
substituted, namely:––
“-
Assembled flooring panels:
4418 73 00
--
Of bamboo or with at least the top layer (wear layer) of bamboo
kg.
12.5%
4418 74 00
--
Other, for mosaic floors
kg.
12.5%
4418 75 00
--
Other, multilayer
kg.
12.5%
4418 79 00
--
Other
kg.
12.5%
-
Other:
4418 91 00
--
Of bamboo
kg.
12.5%
4418 99 00
--
Other
kg.
12.5% ”;
40
155
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
(x) for heading 4419, sub-heading 4419 00, tariff items 4419 00 10 and 4419 00 20 and the entries relating thereto, the
following shall be substituted, namely:––
5
10
15
“4419
TABLEWARE AND KITCHENWARE, OF WOOD
-
Of bamboo:
4419 11 00
--
Bread boards, chopping boards and similar boards
kg.
12.5%
4419 12 00
--
Chopsticks
kg.
12.5%
4419 19 00
--
Other
kg.
12.5%
4419 90
-
Other:
4419 90 10
---
Bread boards, chopping boards and similar boards
kg.
12.5%
4419 90 20
---
Chopsticks
kg.
12.5%
4419 90 90
---
Other
kg.
12.5%”;
(xi) in heading 4421, for sub-heading 4421 90, tariff items 4421 90 11 to 4421 90 90 and the entries relating thereto, the
following shall be substituted, namely:––
“-
Other:
--
Of bamboo:
---
Spools, cops, bobbins, sewing thread reels and the like of turned wood:
4421 91 11
----
For cotton machinery
kg.
12.5%
4422 91 12
----
For jute machinery
kg.
12.5%
4423 91 13
----
For silk regenerated and synthetic fibre machinery
kg.
12.5%
4424 91 14
----
For other machinery
kg.
12.5%
4421 91 19
----
Other
kg.
12.5%
4421 91 20
---
Wood Paving Blocks
kg.
12.5%
4421 91 30
---
Match splints
kg.
12.5%
4421 91 40
---
Pencil slats
kg.
12.5%
4421 91 50
---
Parts of wood, namely oars, paddles and rudders for ships, boats and
other similar floating structures
kg.
12.5%
4421 91 60
---
Parts of domestic decorative articles used as tableware and kitchenware
kg.
12.5%
4421 91 70
---
Articles of densified wood not included or specified elsewhere
kg.
12.5%
4421 91 90
---
Other
kg.
12.5%
4421 99
--
Other:
---
Spools, cops, bobbins, sewing thread reels and the like of turned wood:
4421 99 11
----
For cotton machinery
kg.
12.5%
4421 99 12
----
For jute machinery
kg.
12.5%
4421 99 13
----
For silk regenerated and synthetic fibre machinery
kg.
12.5%
4421 99 14
----
For other machinery
kg.
12.5%
4421 99 19
----
Other
kg.
12.5%
4421 99 20
---
Wood Paving Blocks
kg.
12.5%
4421 99 30
---
Match splints
kg.
12.5%
40 4421 99 40
---
Pencil slats
kg.
12.5%
4421 91
20
25
30
35
156
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
4421 99 50
---
Parts of wood, namely oars, paddles and rudders for ships, boats and
other similar floating structures
kg.
12.5%
4421 99 60
---
Parts of domestic decorative articles used as tableware and kitchenware
kg.
12.5%
4421 99 70
---
Articles of densified wood not included or specified elsewhere
kg.
12.5%
4421 99 90
---
Other
kg.
12.5% ”;
5
(23) in Chapter 48,––
(i) in Note 4, after the words, figures and letters “more than 65 g/m² ”, the words, brackets, figures and letters“, and apply only
to paper: (a) in strips or rolls of a width exceeding 28 cm; or (b) in rectangular (including square) sheets with one side exceeding 10
28 cm and the other side exceeding 15 cm in the unfolded state” shall be inserted;
(ii) in Note 8, the figures and word “4801, and” shall be omitted;
(24) in Chapter 54,––
(i) in heading 5402, for the entry in column (2) occurring after the entry against the heading 5402, the following entry shall
15
be substituted, namely:––
“-
High tenacity yarn of nylon or other polyamides, whether or not textured:”;
(ii) for sub-heading 5402 20 and the entries relating thereto, the following shall be substituted, namely:––
“5402 20
--
High tenacity yarn of polyesters, whether or not textured: ”;
(iii) after tariff item 5402 52 00 and the entries relating thereto, the following shall be inserted, namely:––
“5402 53 00
--
Of polypropylene
kg.
12.5% ”;
20
(iv) after tariff item 5402 62 00 and the entries relating thereto, the following shall be inserted, namely:––
“5402 63 00
--
Of polypropylene
kg.
12.5% ”;
(25) in Chapter 55,––
(i) for heading 5502, sub-heading 5502 00, tariff items 5502 10 00 to 5502 90 00 and the entries relating thereto, the
25
following shall be substituted, namely:––
“5502
ARTIFICIAL FILAMENT TOW
5502 10
--
Of cellulose acetate:
5502 10 10
---
Viscose rayon tow
kg.
12.5%
5502 10 90
---
Other
kg.
12.5%
5502 90
--
Other:
5502 90 10
---
Viscose rayon tow
kg.
12.5%
5502 90 90
---
Other
kg.
12.5% ”;
30
(ii) after tariff item 5506 30 00 and the entries relating thereto, the following shall be inserted, namely:––
“5506 40 00
-
Of polypropylene
kg.
12.5% ”;
(26) in Chapter 56, for heading 5601, sub-heading 5601 21 and the entries relating thereto, the following shall be substituted, 35
namely:––
“5601
5601 21
WADDING OF TEXTILE MATERIALS AND ARTICLES THEREOF;
TEXTILE FIBRES, NOT EXCEEDING 5 MM IN LENGTH (FLOCK),
TEXTILE DUST AND MILL NEPS
-
Wadding of textile materials and articles thereof:
--
Of cotton:”;
(27) in Chapter 57, in heading 5704, after tariff item 5704 10 00 and the entries relating thereto, the following shall be inserted,
namely:––
“5704 20
-
Tiles, having a maximum surface area exceeding 0.3 m² but not exceeding 1 m²:
40
157
5
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
2
12.5%
5704 20 10
---
Cotton
m
5704 20 20
---
Woollen, other than artware
m2
12.5%
2
12.5% ”;
5704 20 90
---
Other
m
(28) in Chapter 60,––
(i) after Note 3, the following shall be inserted, namely:––
“Sub-heading Note:
Sub-heading 6005 35 covers fabrics of polyethylene monofilament or of polyester multifilament, weighing not less
than 30 g/m2 and not more than 55 g/m2 , having a mesh size of not less than 20 holes/cm2 and not more than 100 holes/
cm2, and impregnated or coated with alpha-cypermethrin (ISO), chlorfenapyr (ISO), deltamethrin (INN, ISO), lambdacyhalothrin (ISO), permethrin (ISO) or pirimiphos-methyl (ISO).” ;
10
(ii) for tariff items 6005 31 00 to 6005 34 00 and the entries relating thereto, the following shall be substituted, namely:––
15
“6005 35 00
--
Fabrics specified in Sub-heading Note 1 to this Chapter
kg.
12.5%
6005 36 00
--
Other, unbleached or bleached
kg.
12.5%
6005 37 00
--
Other, dyed
kg.
12.5%
6005 38 00
--
Other, of yarns of different colours
kg.
12.5%
6005 39 00
--
Other, printed
kg.
12.5% ”;
(29) in Chapter 63,––
20
(i) after Note 3, the following shall be inserted, namely:––
“Sub-heading Note:
Sub-heading 6304 20 covers articles made from fabrics, impregnated or coated with alpha-cypermethrin (ISO),
chlorfenapyr (ISO), deltamethrin (INN, ISO), lambda-cyhalothrin (ISO), permethrin (ISO) or pirimiphosmethyl (ISO).”;
(ii) in heading 6304, after tariff item 6304 19 90 and the entries relating thereto, the following shall be inserted, namely:––
25
“6304 20 00
-
Bed nets, of warp knit fabrics specified in Sub-heading Note 1 to this Chapter
u
12.5% ”;
(30) in Chapter 68, in Note1, for clause (m), the following clause shall be substituted, namely:––
“(m)
30
articles of heading 9602, if made of materials specified in Note 2 (b) to
Chapter 96, or of heading 9606 (for example, buttons), of heading 9609
(for example, slate pencils), heading 9610 (for example, drawing slates)
or of heading 9620 (monopods, bipods, tripods and similar articles); or” ;
(31) in Chapter 69,––
(i) for heading 6907, sub-heading 6907 10, tariff items 6907 10 10 and 6907 10 90, sub-heading 6907 90, tariff items 6907
90 10 and 6907 90 90 and the entries relating thereto, the following shall be substituted, namely:––
“6907
CERAMIC FLAGS AND PAVING, HEARTH OR WALL TILES; CERAMIC
MOSAIC CUBES AND THE LIKE, WHETHER OR NOT ON A BACKING;
FINISHING CERAMICS
35
40
-
Flags and paving, hearth or wall tiles, other than those of sub-headings
6907 30 and 6907 40:
6907 21 00
--
Of a water absorption coefficient by weight not exceeding 0.5%
m2
12.5%
6907 22 00
--
Of a water absorption coefficient by weight exceeding 0.5% but not exceeding 10 %
m2
12.5%
2
12.5%
m2
12.5%
m2
12.5% ”;
6907 23 00
--
Of a water absorption coefficient by weight exceeding 10%
6907 30
-
Mosaic cubes and the like, other than those of sub-heading 6907 40:
6907 30 10
---
Mosaic cubes and the like, other than those of sub-heading 6907 40
6907 40
-
Finishing ceramics:
---
Finishing ceramics
45 6907 40 10
m
158
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
(ii) the heading 6908, sub-heading 6908 10, tariff items 6908 10 10 to 6908 10 90, sub-heading 6908 90 and tariff items
6908 90 10 to 6908 90 90 and the entries relating thereto shall be omitted;
(32 ) in Section XV, in Note 1, for clause (m), the following clause shall be substituted, namely:––
“(m)
5
hand sieves, buttons, pens, pencil-holders, pen nibs, monopods, bipods,
tripods and similar articles or other articles of Chapter 96 (miscellaneous
manufactured articles); or”;
(33 ) in Chapter 74, in Note 1, for clause (c), the following clause shall be substituted, namely:––
“( c )
Master alloys
Alloys containing with other elements more than 10 per cent by weight, of
copper not usefully malleable and commonly used as an additive in the
manufacture of other alloys or as de-oxidants, de-sulphuring agents or
for similar uses in the metallurgy of non-ferrous metals. However, copper
phosphide (phosphor copper) containing more than 15% by weight of
phosphorous falls in heading 2853.”;
10
15
(34) in Chapter 82, for the entry in column (2) occurring against the heading 8205, for the words “MACHINE TOOLS”, the words
“MACHINE-TOOLS OR WATER-JET CUTTING MACHINES” shall be substituted;
(35) in Chapter 83, for the entry occurring against heading 8308, the following shall be substituted, namely:––
“8308
CLASPS, FRAMES WITH CLASPS, BUCKLES, BUCKLE-CLASPS,
HOOKS, EYES, EYELETS AND THE LIKE, OF BASE METAL, OF A
KIND USED FOR CLOTHING OR CLOTHING ACCESSORIES,
FOOTWEAR, JEWELLERY, WRIST WATCHES, BOOKS, AWNINGS,
LEATHER GOODS, TRAVEL GOODS OR SADDLERY OR FOR OTHER
MADE UP ARTICLES; TUBULAR OR BIFURCATED RIVETS, OF BASE
METAL; BEADS AND SPANGLES, OF BASE METAL ”;
20
25
(36) in Section XVI, in Note 1, for clause (q), the following clause shall be substituted, namely:––
“(q)
typewriter or similar ribbons, whether or not on spools or in cartridges
(classified according to their constituent material, or in heading 9612 if
inked or otherwise prepared for giving impressions), or monopods, bipods,
tripods and similar articles, of heading 9620.”;
30
(37) in Chapter 84 ,––
(i) in Note 1,––
(A) in clause (f), the word “or” shall be omitted;
(B) after clause (f), the following clause shall be inserted, namely:––
35
“(g) radiators for the articles of Section XVII; or”;
(C ) the existing clause (g) shall be re-lettered as (h);
(ii) in Note 2, in clause (e), for the words “machinery or plant”, the words “machinery, plant or laboratory equipment” shall be
substituted;
(iii) in Note 9, for clause (A), the following clause shall be substituted, namely:––
‘(A)
Notes 9(a) and 9(b) to Chapter 85 also apply with respect to the
expressions “semiconductor devices” and “electronic integrated circuits”,
respectively, as used in this Note and in heading 8486. However, for the
purposes of this Note and of heading 8486, the expression
“semiconductor devices” also covers photosensitive semiconductor
devices and light-emitting diodes (LED).’;
40
45
(iv) in Sub-heading Notes,(A) the following new Sub-heading Note 1 shall be inserted, namely:––
‘1.
For the purposes of sub-heading 8465 20, the term “machining centres”
applies only to machine-tools for working wood, cork, bone, hard rubber,
50
159
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
hard plastics or similar hard materials, which can carry out different types
of machining operations by automatic tool change from a magazine or
the like in conformity with a machining programme.’;
5
(B) the existing Sub-heading Note 1 shall be re-numbered as Sub-heading Note 2 and after Sub-heading Note 2 as so
re-numbered, the following Sub-heading Note shall be inserted, namely:––
‘3.
10
For the purposes of sub-heading 8481 20, the expression “valves for
oleohydraulic or pneumatic transmissions” means valves which are used
specifically in the transmission of “fluid power” in a hydraulic or pneumatic
system, where the energy source is supplied in the form of pressurised
fluids (liquid or gas). These valves may be of any type (for example,
pressure-reducing type, check type). Sub-heading 8481 20 takes
precedence over all other sub-headings of heading 8481.’;
(C) the existing Sub-heading Note 2 shall be re-numbered as Sub-heading Note 4;
15
(v) in heading 8415, for sub-heading 8415 10 and the entries relating thereto, the following shall be substituted,
namely:––
‘8415 10
20
-
Of a kind designed to be fixed to a window, wall, ceiling or floor,
self-contained or “split-system”:’;
(vi) in heading 8424,––
(a) after tariff item 8424 30 00 and the entries relating thereto, the following shall be inserted, namely:––
“-
Agricultural or horticultural sprayers:
8424 41 00
--
Portable sprayers
u
Nil
8424 49 00
--
Other
u
Nil ”;
(b) for tariff item 8424 81 00 and the entries relating thereto, the following shall be substituted, namely:––
25
“8424 82 00
--
Agricultural or horticultural
u
Nil ”;
(vii) in heading 8432,––
(a) for tariff item 8432 30 00 and the entries relating thereto, the following shall be substituted, namely:––
30
“-
Seeders, planters and transplanters:
8432 31 00
--
No-till direct seeders, planters and transplanters
u
Nil
8432 39 00
--
Other
u
Nil ”;
(b) for tariff item 8432 40 00 and the entries relating thereto, the following shall be substituted, namely:––
35
“-
Manure spreaders and fertiliser distributors:
8432 41 00
--
Manure spreaders
u
Nil
8432 42 00
--
Fertiliser distributors
u
Nil ”;
(viii) for heading 8442 and the entries relating thereto, the following shall be substituted, namely:––
“8442
MACHINERY, APPARATUS AND EQUIPMENT (OTHER THAN THE
MACHINES OF HEADINGS 8456 TO 8465) FOR PREPARING OR
MAKING PLATES, PRINTING COMPONENTS; PLATES, CYLINDERS
AND LITHOGRAPHIC STONES, PREPARED FOR PRINTING
PURPOSES (FOR EXAMPLE, PLANED, GRAINED OR POLISHED)”;
40
(ix) in heading 8456,––
(a) for tariff item 8456 10 00 and the entries relating thereto, the following shall be substituted, namely:––
45
“-
Operated by laser or other light or photon beam processes:
8456 11 00
--
Operated by laser
u
12.5%
8456 12 00
--
Operated by other light or photon beam processes
u
12.5% ”;
160
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
(b) after tariff item 8456 30 00 and the entries relating thereto, the following shall be inserted, namely:––
“8456 40 00
-
Operated by plasma arc processes
u
12.5%
8456 50 00
-
Water-jet cutting machines
u
12.5% ”;
5
(x) for sub-heading 8459 40, tariff items 8459 40 10 to 8459 40 90 and the entries relating thereto, the following shall be
substituted, namely:––
“-
Other boring machines:
8459 41
--
Numerically controlled:
8459 41 10
---
Jig boring machines, horizontal
u
12.5%
8459 41 20
---
Fine boring machines, horizontal
u
12.5%
8459 41 30
---
Fine boring machines, vertical
u
12.5%
8459 41 90
---
Other
u
12.5%
8459 49
--
Other:
8459 49 10
---
Jig boring machines, horizontal
u
12.5%
8459 49 20
---
Fine boring machines, horizontal
u
12.5%
8459 49 30
---
Fine boring machines, vertical
u
12.5%
8459 49 90
---
Other
u
12.5% ”;
10
15
(xi) for heading 8460, tariff items 8460 11 00 to 8460 21 00, sub-heading 8460 29, tariff items 8460 29 10 to 8460 29 90 and
20
the entries relating thereto, the following shall be substituted, namely:––
“8460
MACHINE-TOOLS FOR DEBURRING, SHARPENING, GRINDING,
HONING, LAPPING, POLISHING OR OTHERWISE FINISHING METAL,
OR CERMETS BY MEANS OF GRINDING STONES, ABRASIVES OR
POLISHING PRODUCTS, OTHER THAN GEAR CUTTING, GEAR
GRINDING OR GEAR FINISHING MACHINES OF HEADING 8461
25
-
Flat-surface grinding machines:
8460 12 00
--
Numerically controlled
u
12.5%
8460 19 00
--
Other
u
12.5%
-
Other grinding machines:
8460 22 00
--
Centreless grinding machines, numerically controlled
u
12.5%
8460 23 00
--
Other cylindrical grinding machines, numerically controlled
u
12.5%
8460 24 00
--
Other, numerically controlled
u
12.5%
8460 29
--
Other:
8460 29 10
---
Cylindrical grinders
u
12.5%
8460 29 20
---
Internal grinders
u
12.5%
8460 29 30
---
Centreless grinders
u
12.5%
8460 29 40
---
Profile grinders
u
12.5%
8460 29 90
---
Other
u
12.5% ”;
30
35
(xii) after tariff item 8465 10 00 and the entries relating thereto, the following shall be inserted, namely:––
“8465 20 00
-
Machining centres
u
(xiii) in heading 8466,––
(a) for heading 8466, and the entries relating thereto, the following shall be substituted, namely:––
12.5% ”;
40
161
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
“8466
PARTS AND ACCESSORIES SUITABLE FOR USE SOLELY OR
PRINCIPALLY WITH THE MACHINES OF HEADINGS 8456 TO 8465
INCLUDING WORK OR TOOL HOLDERS, SELF-OPENING DIEHEADS,
DIVIDING HEADS AND OTHER SPECIAL ATTACHMENTS FOR THE
MACHINES; TOOL HOLDERS FOR ANY TYPE OF TOOL, FOR
WORKING IN THE HAND”;
5
(b) for sub-heading 8466 30 and the entries relating thereto, the following shall be substituted, namely:––
10
“8466 30
-
Dividing heads and other special attachments for machines:” ;
(xiv) the heading 8469, sub-heading 8469 00, tariff items 8469 00 10 to 8469 00 90 and the entries relating thereto shall be
omitted;
(xv) in heading 8472, for tariff item 8472 90 90 and the entries relating thereto the following shall be substituted,
namely:––
15
20
“- - -
Other:
8472 90 91
----
Word-processing machines
u
12.5%
8472 90 92
----
Automatic typewriters
u
12.5%
8472 90 93
----
Braille typewriters, electric
u
Nil
8472 90 94
----
Braille typewriters, non-electric
u
Nil
8472 90 95
----
Other typewriters, electric or non-electric
u
12.5%
8472 90 99
----
Other
u
12.5% ”;
(xvi) in heading 8473,––
(a) for heading 8473 and the entries relating thereto, the following shall be substituted, namely:––
“8473
PARTS AND ACCESSORIES (OTHER THAN COVERS, CARRYING
CASES AND THE LIKE) SUITABLE FOR USE SOLELY OR
PRINCIPALLY WITH MACHINES OF HEADINGS 8470 TO 8472”;
25
(b) the tariff item 8473 10 00 and the entries relating thereto shall be omitted;
(c) for tariff item 8473 50 00 and the entries relating thereto, the following shall be substituted, namely:––
“8473 50 00
-
30
Parts and accessories equally suitable for use with the machines of two
or more of the headings 8470 to 8472
u
12.5% ”;
(38) in Chapter 85,––
(i) in the Notes, after Note 2, the following shall be inserted, namely:––
‘3.
35
40
For the purposes of heading 8507, the expression “electric accumulators”
includes those presented with ancillary components which contribute to
the accumulator’s function of storing and supplying energy or protect it
from damage, such as electrical connectors, temperature control devices
(for example, thermistors) and circuit protection devices. They may also
include a portion of the protective housing of the goods in which they are
to be used.’;
(ii) the existing Notes 3, 4, 5, 6, 7, 8 and 9 shall respectively be re-numbered as 4, 5, 6, 7, 8, 9 and 10 ;
(iii) in Note 9 as so re-numbered, in clause (b), after sub-clause (iii), the following new sub-clause shall be inserted,
namely:––
‘(iv)
45
Multi-component integrated circuits (MCOs): a combination of one or
more monolithic, hybrid, or multi-chip integrated circuits with at least one
of the following components: silicon-based sensors, actuators, oscillators,
resonators or combinations thereof, or components performing the
functions of articles classifiable under heading 8532, 8533, 8541, or
inductors classifiable under heading 8504, formed to all intents and
purposes indivisibly into a single body like an integrated circuit, as a
162
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
component of a kind used for assembly onto a printed circuit board (PCB)
or other carrier, through the connecting of pins, leads, balls, lands, bumps,
or pads.
5
For the purpose of this definition:
(1)
“Components” may be discrete, manufactured independently then assembled onto the rest of the MCO, or
integrated into other components.
(2)
“Silicon based” means built on a silicon substrate, or made of silicon materials, or manufactured onto integrated
10
circuit die.
(3) (a) “Silicon based sensors” consist of microelectronic or mechanical structures that are created in the mass or on
the surface of a semiconductor and that have the function of detecting physical or chemical quantities and transducing these
into electric signals, caused by resulting variations in electric properties or displacement of a mechanical structure. “Physical
or chemical quantities” relates to real world phenomena, such as pressure, acoustic waves, acceleration, vibration, movement,
orientation, strain, magnetic field strength, electric field strength, light, radioactivity, humidity, flow, chemicals concentration, 15
etc.
(b)
“Silicon based actuators” consist of microelectronic and mechanical structures that are created in the mass or
on the surface of a semiconductor and that have the function of converting electrical signals into physical movement.
(c)
“Silicon based resonators” are components that consist of microelectronic or mechanical structures that are
created in the mass or on the surface of a semiconductor and have the function of generating a mechanical or electrical 20
oscillation of a predefined frequency that depends on the physical geometry of these structures in response to an external
input.
(d)
“Silicon based oscillators” are active components that consist of microelectronic or mechanical structures that
are created in the mass or on the surface of a semiconductor and that have the function of generating a mechanical or
electrical oscillation of a predefined frequency that depends on the physical geometry of these structures.’;
25
(iv) in heading 8528, for tariff items 8528 41 00 to 8528 69 00 and the entries relating thereto, the following shall be
substituted, namely:––
“8528 42 00
--
Capable of directly connecting to and designed for use with an automatic
data processing machine of heading 8471
u
12.5%
8528 49 00
--
Other
u
12.5%
-
Other monitors:
8528 52 00
--
Capable of directly connecting to and designed for use with an automatic
data processing machine of heading 8471
u
12.5%
8528 59 00
--
Other
u
12.5%
-
Projectors:
8528 62 00
--
Capable of directly connecting to and designed for use with an automatic
data processing machine of heading 8471
u
12.5%
8528 69 00
--
Other
u
12.5% ”;
30
35
(v) for tariff item 8531 20 00 and the entries relating thereto, the following shall be substituted, namely:––
“8531 20 00
-
Indicator panels incorporating liquid crystal devices (LCD) or light-emitting
diodes (LED)
u
12.5% ”;
40
(vi) in heading 8539,––
(a) for heading 8539 and the entries relating thereto, the following shall be substituted, namely:––
“8539
ELECTRIC FILAMENT OR DISCHARGE LAMPS INCLUDING SEALED
BEAM LAMP UNITS AND ULTRA-VIOLET OR INFRA-RED LAMPS,
ARC LAMPS; LIGHT-EMITTING DIODE (LED) LAMPS”;
45
(b) after tariff item 8539 49 00 and the entries relating thereto, the following shall be inserted, namely:––
“8539 50 00
-
Light-emitting diode (LED) lamps
u
12.5% ”;
163
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
(vii) in heading 8541,––
(a) for heading 8541 and the entries relating thereto, the following shall be substituted, namely:––
5
10
“8541
DIODES, TRANSISTORS AND SIMILAR SEMI-CONDUCTOR DEVICES;
PHOTOSENSITIVE SEMI-CONDUCTOR DEVICES; INCLUDING PHOTO
VOLTAIC CELLS, WHETHER OR NOT ASSEMBLED IN MODULES OR
MADE UP INTO PANELS; LIGHT-EMITTING DIODES (LED); MOUNTED
PIEZO-ELECTRIC CRYSTALS”;
(b) for tariff item 8541 10 00 and the entries relating thereto, the following shall be substituted, namely:––
“8541 10 00
-
Diodes, other than photosensitive or light-emitting diodes(LED)
u
12.5% ”;
(c) for sub-heading 8541 40 and the entries relating thereto, the following shall besubstituted, namely:––
“8541 40
-
15
”;
Photosensitive semi-conductor devices, including photo voltaic cells
whether or not assembled in modules or made up into panels; lightemitting diodes (LED):”;
(39) in Section XVII, in Note 2, for clause (e), the following clause shall be substituted, namely:––
“(e)
20
machines and apparatus of headings 8401 to 8479, or parts thereof,
other than the radiators for the articles of this Section, articles of heading
8481 or 8482 or, provided they constitute integral parts of engines and
motors, articles of heading 8483;”;
(40) in Chapter 87,––
(i) in heading 8701,––
(a) for tariff item 8701 10 00, the following shall be substituted, namely:––
“8701 10 00
25
30
-
Single axle tractors
u
12.5% ”;
(b) for sub-heading 8701 90, tariff items 8701 90 10 and 8701 90 90 and the entries relating thereto, the following shall
be substituted, namely:––
“-
Other, of an engine power:
8701 91 00
--
Not exceeding 18 kW
u
12.5%
8701 92 00
--
Exceeding 18 kW but not exceeding 37 kW
u
12.5%
8701 93 00
--
Exceeding 37 kW but not exceeding 75 kW
u
12.5%
8701 94 00
--
Exceeding 75 kW but not exceeding 130 kW
u
12.5%
8701 95 00
--
Exceeding 130 kW
u
12.5% ”;
(ii) in heading 8702, for sub-heading 8702 10, tariff items 8702 10 11 to 8702 10 99, sub-heading 8702 90, tariff items 8702
90 11 to 8702 90 99, the following shall be substituted, namely:—
35
-
With only compression-ignition internal combustion piston engine
(diesel or semi-diesel):
---
Vehicles for transport of not more than 13 persons, including the driver:
8702 10 11
----
Integrated monocoque vehicle, air-conditioned
u
27%
8702 10 12
----
Integrated monocoque vehicle, non air-conditioned
u
27%
40 8702 10 18
----
Other, air-conditioned
u
27%
8702 10 19
----
Other, non air-conditioned
u
27%
---
Other:
8702 10 21
----
Integrated monocoque vehicle, air-conditioned
u
12.5%
8702 10 22
----
Integrated monocoque vehicle, non air-conditioned
u
12.5%
8702 10 28
----
Other, air-conditioned
u
12.5%
45
“8702 10
164
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
8702 10 29
----
Other, non air-conditioned
8702 20
-
With both compression-ignition internal combustion piston engine (diesel
or semi-diesel) and electric motor as motors for propulsion:
u
12.5%
5
---
Vehicles for transport of not more than 13 persons, including the driver:
8702 20 11
----
Integrated monocoque vehicle, air-conditioned
u
27%
8702 20 12
----
Integrated monocoque vehicle, non air-conditioned
u
27%
8702 20 18
----
Other, air-conditioned
u
27%
8702 20 19
----
Other, non air-conditioned
u
27%
---
Other:
8702 20 21
----
Integrated monocoque vehicle, air-conditioned
u
12.5%
8702 20 22
----
Integrated monocoque vehicle, non air-conditioned
u
12.5%
8702 20 28
----
Other, air-conditioned
u
12.5%
8702 20 29
----
Other, non air-conditioned
u
12.5%
8702 30
-
With both spark-ignition internal combustion reciprocating piston engine
and electric motor as motors for propulsion:
---
Vehicles for transport of not more than 13 persons, including the driver:
8702 30 11
----
Integrated monocoque vehicle, air-conditioned
u
27%
8702 30 12
----
Integrated monocoque vehicle, non air-conditioned
u
27%
8702 30 18
----
Other, air-conditioned
u
27%
8702 30 19
----
Other, non air-conditioned
u
27%
---
Other:
8702 30 21
----
Integrated monocoque vehicle, air-conditioned
u
12.5%
8702 30 22
----
Integrated monocoque vehicle, non air-conditioned
u
12.5%
8702 30 28
----
Other, air-conditioned
u
12.5%
8702 30 29
----
Other, non air-conditioned
u
12.5%
8702 40
-
With only electric motor for propulsion:
---
Vehicles for transport of not more than 13 persons, including the driver:
8702 40 11
----
Integrated monocoque vehicle, air-conditioned
u
12.5%
8702 40 12
----
Integrated monocoque vehicle, non air-conditioned
u
12.5%
8702 40 18
----
Other, air-conditioned
u
12.5%
8702 40 19
----
Other, non air-conditioned
u
12.5%
---
Other:
8702 40 21
----
Integrated monocoque vehicle, air-conditioned
u
12.5%
8702 40 22
----
Integrated monocoque vehicle, non air-conditioned
u
12.5%
8702 40 28
----
Other, air-conditioned
u
12.5%
8702 40 29
----
Other, non air-conditioned
u
12.5%
8702 90
-
Other:
---
Vehicles for transport of not more than 13 persons, including the driver:
10
15
20
25
30
35
40
165
5
10
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
8702 90 11
----
Integrated monocoque vehicle, air-conditioned
u
27%
8702 90 12
----
Integrated monocoque vehicle, non air-conditioned
u
27%
8702 90 18
----
Other, air-conditioned
u
27%
8702 90 19
----
Other, non air-conditioned
u
27%
---
Other:
8702 90 21
----
Integrated monocoque vehicle, air-conditioned
u
27%
8702 90 22
----
Integrated monocoque vehicle, non air-conditioned
u
27%
8702 90 28
----
Other, air-conditioned
u
27%
8702 90 29
----
Other, non air-conditioned
u
27% ”;
(iii) in heading 8703,––
(a) in the entry in column (2) occurring after tariff item 8703 10 90 and the entries relating thereto, after the word “with”, the
word “only” shall be inserted;
15
(b) in the entry in column (2) occurring after tariff item 8703 24 99 and the entries relating thereto, for the words “with
compression ignition”, the words “with only compression-ignition” shall be substituted;
(c ) the tariff items 8703 31 20 and 8703 32 20 and the entries relating thereto shall be omitted;
(d) after tariff item 8703 33 99 and the entries relating thereto, the following shall be inserted, namely:––
“8703 40
-
Other vehicles, with both spark-ignition internal combustion reciprocating
piston engine and electric motor as motors for propulsion, other than
those capable of being charged by plugging to external source of electric
power:
8703 40 10
---
Vehicles principally designed for transport of more than seven persons,
including driver
u
30%
8703 40 20
---
Specialised transport vehicles such as ambulances, prison vans and the like
u
30%
8703 40 30
---
Motor cars
u
30%
8703 40 40
---
Three-wheeled vehicles
u
24%
8703 40 90
---
Other
u
30%
8703 50
-
Other vehicles, with both compression-ignition internal combustion piston
engine (diesel or semi-diesel) and electric motor as motors for propulsion,
other than those capable of being charged by plugging to external source
of electric power:
8703 50 10
---
Vehicles principally designed for transport of more than seven persons,
including driver
u
30%
8703 50 20
---
Specialised transport vehicles such as ambulances, prison vans and the like u
30%
8703 50 30
---
Motor cars
u
30%
8703 50 40
---
Three-wheeled vehicles
u
24%
8703 50 90
---
Other
u
30%
8703 60
-
Other vehicles, with both spark-ignition internal combustion reciprocating
piston engine and electric motor as motors for propulsion, capable of
being charged by plugging to external source of electric power:
8703 60 10
---
Vehicles principally designed for transport of more than seven persons,
including driver
u
30%
8703 60 20
---
Specialised transport vehicles such as ambulances, prison vans and the like
u
30%
8703 60 30
---
Motor cars
u
30%
20
25
30
35
40
50
166
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
8703 60 40
---
Three-wheeled vehicles
u
24%
8703 60 90
---
Other
u
30%
8703 70
-
Other vehicles, with both compression-ignition internal combustion piston
engine (diesel or semi-diesel) and electric motor as motors for propulsion,
capable of being charged by plugging to external source of electric power:
8703 70 10
---
Vehicles principally designed for transport of more than seven persons,
including driver
u
30%
8703 70 20
---
Specialised transport vehicles such as ambulances, prison vans and the like
u
30%
8703 70 30
---
Motor cars
u
30%
8703 70 40
---
Three-wheeled vehicles
u
24%
8703 70 90
---
Other
u
30%
8703 80
-
Other vehicles, with only electric motor for propulsion:
8703 80 10
---
Vehicles principally designed for transport of more than seven persons,
including driver
u
12.5%
8703 80 20
---
Specialised transport vehicles such as ambulances, prison vans and the like
u
12.5%
8703 80 30
---
Motor cars
u
12.5%
8703 80 40
---
Three-wheeled vehicles
u
12.5%
8703 80 90
---
Other
u
30% ”;
5
10
15
20
(e) for sub-heading 8703 90, tariff items 8703 90 10 and 8703 90 90 and the entries relating thereto, the following shall
be substituted, namely:––
“8703 90 00
-
Other
u
30% ”;
(iv) in heading 8711,––
25
(a) after tariff item 8711 50 00 and the entries relating thereto, the following shall be inserted, namely:––
“8711 60
-
With electric motor for propulsion:
8711 60 10
---
Motor cycles
u
12.5%
8711 60 20
---
Scooters
u
12.5%
8711 60 30
---
Mopeds
u
12.5%
8711 60 90
---
Others
u
12.5% ”;
30
(b) for sub-heading 8711 90, tariff items 8711 90 10 to 8711 90 99 and the entries relating thereto, the following shall be
substituted, namely:––
“8711 90
-
Other:
8711 90 10
---
Side cars
u
12.5%
8711 90 90
---
Other
u
12.5% ”;
35
(41) in Chapter 90,––
(i) in Note 1,––
(A) in clause (g), after the word “machine-tools”, the words “or water-jet cutting machines” shall be inserted;
(B) after clause (k), the following clause shall be inserted, namely:––
“(l)
monopods, bipods, tripods and similar articles, of heading 9620;”;
(C) the existing clauses (l) and (m) shall respectively be re-lettered as (m) and (n);
(ii) in heading 9006, the tariff item 9006 10 00 and the entries relating thereto shall be omitted;
(42) in Chapter 92, in Note 1, for clause (d), the following clause shall be substituted, namely:––
40
167
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
“(d) brushes for cleaning musical instruments (heading 9603), or monopods, bipods, tripods and similar articles (heading
9620); or”;
5
(43) in Chapter 94,––
(i) in Note 1,––
(A) in clause (k), the word “or” shall be omitted;
(B) in clause (l), the word “or” shall be inserted at the end;
(C) after clause (l), the following clause shall be inserted, namely:––
10
“(m) monopods, bipods, tripods and similar articles (heading 9620).”;
(ii) for tariff item 9401 51 00 and the entries relating thereto, the following shall be substituted, namely:––
15
“9401 52 00
--
Of bamboo
u
12.5%
9401 53 00
--
Of rattan
u
12.5% ”;
(iii) for tariff item 9403 81 00 and the entries relating thereto, the following shall be substituted, namely:––
20
“9401 82 00
--
Of bamboo
u
12.5%
9401 83 00
--
Of rattan
u
12.5% ”;
(iv) for heading 9406, sub-heading 9406 00, tariff items 9406 00 11 to 9406 00 99 and the entries relating thereto, the
following shall be substituted, namely:––
“9406
25
30
35
PREFABRICATED BUILDINGS
9406 10
-
Of wood:
9406 10 10
---
Green-houses
u
12.5%
9406 10 20
---
For cold storage
u
12.5%
9406 10 30
---
Silos for storing ensilage
u
12.5%
9406 10 90
---
Other
u
12.5%
9406 90
-
Other:
9406 90 10
---
Green-houses
u
12.5%
9406 90 20
---
For cold storage
u
12.5%
9406 90 30
---
Silos for storing ensilage
u
12.5%
9406 90 90
---
Other
u
12.5% ”;
(44) in Chapter 95,––
(i) in Note 1,––
(A) for clause (e), the following clause shall be substituted, namely:––
40
45
“( e )
fancy dress of textiles, of Chapter 61 or 62; sports clothing and special
articles of apparel of textiles, of Chapter 61 or 62, whether or not
incorporating incidentally protective components such as pads or padding
in the elbow, knee or groin areas (for example, fencing clothing or soccer
goalkeeper jerseys);”;
(B) after clause (t), the following clause shall be inserted, namely:––
“(u)
monopods, bipods, tripods and similar articles (heading 9620);”;
(C) the existing clauses (u) and (v) shall respectively be re-lettered as (v) and (w);
(45) in Chapter 96, after tariff item 9619 00 90 and the entries relating thereto, the following shall be inserted, namely:––
“9620 00 00
-
MONOPODS, BIPODS, TRIPODS AND SIMILAR ARTICLES
u
12.5% ”.
THE NINTH SCHEDULE
(See section 144)
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
In the Second Schedule to the Central Excise Tariff Act,––
5
(i) in heading 4011, for tariff items 4011 61 00 to 4011 99 00 and the entries relating thereto, the following shall be
substituted, namely:––
“4011 50 90
---
Other
u
8%
4011 70 00
-
Of a kind used on agricultural or forestry vehicles and machines
u
8%
4011 80 00
-
Of a kind used on construction, mining or industrial handling vehicles
and machines
u
8%
4011 90 00
-
Other
u
8%’’;
10
(ii) for sub-heading 5402 20 and the entries relating thereto, the following shall be substituted, namely:––
“5402 20
--
High tenacity yarn of polyesters, whether or not textured: ”;
(iii) in heading 8415, for sub-heading 8415 10 and the entries relating thereto, the following shall be substituted, namely:–– 15
‘8415 10
-
Of a kind designed to be fixed to a window, wall, ceiling or floor, selfcontained or “split-system”:’;
(iv) in sub-heading 8702 10, for tariff items 8702 10 11 to 8702 10 99, sub- heading 8702 90, tariff items 8702 90 11 to
8702 90 20 and the entries relating thereto, the following shall be substituted, namely:––
“8702 10
-
With only compression-ignition internal combustion piston engine (diesel
or semi-diesel):
---
Vehicles for transport of not more than 13 persons, including the driver:
8702 10 11
----
Integrated monocoque vehicle, air-conditioned
u
8%
8702 10 12
----
Integrated monocoque vehicle, non air-conditioned
u
8%
8702 10 18
----
Other, air-conditioned
u
8%
8702 10 19
----
Other, non air-conditioned
u
8%
---
Other:
8702 10 21
----
Integrated monocoque vehicle, air-conditioned
u
8%
8702 10 22
----
Integrated monocoque vehicle, non air-conditioned
u
8%
8702 10 28
----
Other, air-conditioned
u
8%
8702 10 29
----
Other, non air-conditioned
u
8%
-
With both compression-ignition internal combustion piston engine (diesel
or semi-diesel) and electric motor as motors for propulsion:
---
Vehicles for transport of not more than 13 persons, including the driver:
8702 20 11
----
Integrated monocoque vehicle, air-conditioned
u
8%
8702 20 12
----
Integrated monocoque vehicle, non air-conditioned
u
8%
8702 20 18
----
Other, air-conditioned
u
8%
8702 20 19
----
Other, non air-conditioned
u
8%
---
Other:
----
Integrated monocoque vehicle, air-conditioned
u
8%
8702 20
8702 20 21
168
20
25
30
35
40
169
5
10
15
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
8702 20 22
----
Integrated monocoque vehicle, non air-conditioned
u
8%
8702 20 28
----
Other, air-conditioned
u
8%
8702 20 29
----
Other, non air-conditioned
u
8%
8702 30
-
With both spark-ignition internal combustion reciprocating piston engine
and electric motor as motors for propulsion:
---
Vehicles for transport of not more than 13 persons, including the driver:
8702 30 11
----
Integrated monocoque vehicle, air-conditioned
u
8%
8702 30 12
----
Integrated monocoque vehicle, non air-conditioned
u
8%
8702 30 18
----
Other, air-conditioned
u
8%
8702 30 19
----
Other, non air-conditioned
u
8%
---
Other:
8702 30 21
----
Integrated monocoque vehicle, air-conditioned
u
8%
8702 30 22
----
Integrated monocoque vehicle, non air-conditioned
u
8%
8702 30 28
----
Other, air-conditioned
u
8%
8702 30 29
----
Other, non air-conditioned
u
8%
-
With only electric motor for propulsion:
---
Vehicles for transport of not more than 13 persons, including the driver:
8702 40 11
----
Integrated monocoque vehicle, air-conditioned
u
8%
8702 40 12
----
Integrated monocoque vehicle, non air-conditioned
u
8%
8702 40 18
----
Other, air-conditioned
u
8%
8702 40 19
----
Other, non air-conditioned
u
8%
---
Other:
8702 40 21
----
Integrated monocoque vehicle, air-conditioned
u
8%
8702 40 22
----
Integrated monocoque vehicle, non air-conditioned
u
8%
8702 40 28
----
Other, air-conditioned
u
8%
8702 40 29
----
Other, non air-conditioned
u
8%
-
Other:
---
Vehicles for transport of not more than 13 persons, including the driver:
8702 90 11
----
Integrated monocoque vehicle, air-conditioned
u
8%
8702 90 12
----
Integrated monocoque vehicle, non air-conditioned
u
8%
8702 90 18
----
Other, air-conditioned
u
8%
8702 90 19
----
Other, non air-conditioned
u
8%
---
Other:
8702 90 21
----
Integrated monocoque vehicle, air-conditioned
u
8%
8702 90 22
----
Integrated monocoque vehicle, non air-conditioned
u
8%
8702 90 28
----
Other, air-conditioned
u
8%
8702 90 29
----
Other, non air-conditioned
u
8% ”;
8702 40
20
25
8702 90
30
35
170
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
(v) in sub-heading 8703 10,––
(a) in the entry in column (2) occurring after tariff item 8703 10 90 and the entries relating thereto, after the word “with”, the
word “only” shall be inserted;
5
(b) in the entry in column (2) occurring after tariff item 8703 24 99 and the entries relating thereto, for the word “with”, the
word “only” shall be inserted;
(c) after tariff item 8703 33 99 and the entries relating thereto, the following shall be inserted, namely:––
“8703 40
-
Other vehicles, with both spark-ignition internal combustion reciprocating
piston engine and electric motor as motors for propulsion, other than
those capable of being charged by plugging to external source of electric
power:
10
8703 40 10
---
Vehicles principally designed for transport of more than seven persons,
including driver
u
8%
8703 40 20
---
Specialised transport vehicles such as ambulances, prison vans and the like
u
8%
8703 40 30
---
Motor cars
u
8%
8703 40 40
---
Three-wheeled vehicles
u
8%
8703 40 90
---
Other
u
8%
8703 50
-
Other vehicles, with both compression-ignition internal combustion piston
engine (diesel or semi-diesel) and electric motor as motors for propulsion,
other than those capable of being charged by plugging to external source
of electric power:
15
20
8703 50 10
---
Vehicles principally designed for transport of more than seven persons,
including driver
u
8%
8703 50 20
---
Specialised transport vehicles such as ambulances, prison vans and the like
u
8%
8703 50 30
---
Motor cars
u
8%
8703 50 40
---
Three-wheeled vehicles
u
8%
8703 50 90
---
Other
u
8%
8703 60
-
Other vehicles, with both spark-ignition internal combustion reciprocating
piston engine and electric motor as motors for propulsion, capable of
being charged by plugging to external source of electric power:
25
30
8703 60 10
---
Vehicles principally designed for transport of more than seven persons,
including driver
u
8%
8703 60 20
---
Specialised transport vehicles such as ambulances, prison vans and the like
u
8%
8703 60 30
---
Motor cars
u
8%
8703 60 40
---
Three-wheeled vehicles
u
8%
8703 60 90
---
Other
u
8%
8703 70
-
Other vehicles, with both compression-ignition internal combustion piston
engine (diesel or semi-diesel) and electric motor as motors for propulsion,
capable of being charged by plugging to external source of electric power:
35
40
8703 70 10
---
Vehicles principally designed for transport of more than seven persons,
including driver
u
8%
8703 70 20
---
Specialised transport vehicles such as ambulances, prison vans and the like
u
8%
8703 70 30
---
Motor cars
u
8%
8703 70 40
---
Three-wheeled vehicles
u
8%
8703 70 90
---
Other
u
8%
45
171
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
8703 80
-
Other vehicles, with only electric motor for propulsion:
8703 80 10
---
Vehicles principally designed for transport of more than seven persons,
including driver
u
8%
8703 80 20
---
Specialised transport vehicles such as ambulances, prison vans and the like
u
8%
8703 80 30
---
Motor cars
u
8%
8703 80 40
---
Three-wheeled vehicles
u
8%
8703 80 90
---
Other
u
8%”;
5
10
(vi) for sub-heading 8703 90, tariff items 8703 90 10 and 8703 90 90 and the entries relating thereto, the following shall be
substituted, namely:––
“8703 90 00
-
Other
u
8%”.
THE TENTH SCHEDULE
(See section 157)
Notification No.
Amendment
(1)
(2)
G.S.R. 519(E), dated the 29 th
June, 2012 [No.41/2012-Service
Tax, dated the 29th June, 2012]
In the said notification, in the Explanation,–
Period of effect of amendment
(3)
1 st day of July, 2012 to 2 nd
February, 2016 (both days
(a) in clause (A), for sub-clause (i), the following sub-clause inclusive).
shall be substituted and shall be deemed to have been
substituted, namely:––
“(i) in the case of excisable goods, taxable services
that have been used beyond factory or any other place
or premises of production or manufacture of the said
goods, for their export;”;
(b) clause (B) shall be omitted.
172
5
10
THE ELEVENTH SCHEDULE
(See section 159)
5
Item No.
Description of goods
Rate
(1)
(2)
(3)
1.
All goods falling under heading 8703 of the First Schedule to the
Central Excise Tariff Act, 1985 (5 of 1986).
173
4%
THE TWELFTH SCHEDULE
[See section 228 (i)]
In the Seventh Schedule to the Finance Act, 2001,––
(a) in column (1), for the tariff item “2403 10 10”, the tariff item “2403 11 10” shall be substituted;
(b) in column (1), for the tariff item “2403 10 20”, the tariff item “2403 19 10” shall be substituted;
(c) in column (1), for the tariff item “2403 10 31”, the tariff item “2403 19 21” shall be substituted;
(d) in column (1), for the tariff item “2403 10 39”, the tariff item “2403 19 29” shall be substituted;
(e) in column (1), for the tariff item “2403 10 90”, the tariff item “2403 19 90” shall be substituted.
174
5
THE THIRTEENTH SCHEDULE
[See section 228 (ii)]
In the Seventh Schedule to the Finance Act, 2001,––
5
(i) for sub-heading 8702 10, tariff items 8702 10 11 to 8702 10 19 and sub-heading 8702 90, tariff items 8702 90 11 to 8702
90 20 and the entries relating thereto, the following shall be substituted, namely:––
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
“8702 10
-
With only compression-ignition internal combustion piston engine (diesel
or semi-diesel):
---
Vehicles for transport of not more than 13 persons, including the driver:
8702 10 11
----
Integrated monocoque vehicle, air-conditioned
u
1%
8702 10 12
----
Integrated monocoque vehicle, non air-conditioned
u
1%
8702 10 18
----
Other, air-conditioned
u
1%
8702 10 19
----
Other, non air-conditioned
u
1%
8702 20
-
With both compression-ignition internal combustion piston engine (diesel
or semi-diesel) and electric motor as motors for propulsion:
---
Vehicles for transport of not more than 13 persons, including the driver:
8702 20 11
----
Integrated monocoque vehicle, air-conditioned
u
1%
8702 20 12
----
Integrated monocoque vehicle, non air-conditioned
u
1%
8702 20 18
----
Other, air-conditioned
u
1%
8702 20 19
----
Other, non air-conditioned
u
1%
8702 30
-
With both spark-ignition internal combustion reciprocating piston engine
and electric motor as motors for propulsion:
---
Vehicles for transport of not more than 13 persons, including the driver:
8702 30 11
----
Integrated monocoque vehicle, air-conditioned
u
1%
8702 30 12
----
Integrated monocoque vehicle, non air-conditioned
u
1%
8702 30 18
----
Other, air-conditioned
u
1%
8702 30 19
----
Other, non air-conditioned
u
1%
8702 40
-
With only electric motor for propulsion:
---
Vehicles for transport of not more than 13 persons, including the driver:
8702 40 11
----
Integrated monocoque vehicle, air-conditioned
u
1%
8702 40 12
----
Integrated monocoque vehicle, non air-conditioned
u
1%
8702 40 18
----
Other, air-conditioned
u
1%
8702 40 19
----
Other, non air-conditioned
u
1%
8702 90
-
Other:
---
Vehicles for transport of not more than 13 persons, including the driver:
8702 90 11
----
Integrated monocoque vehicle, air-conditioned
u
1%
8702 90 12
----
Integrated monocoque vehicle, non air-conditioned
u
1%
8702 90 18
----
Other, air-conditioned
u
1%
8702 90 19
----
Other, non air-conditioned
u
1%”;
10
15
20
25
30
35
40
175
176
(ii) in the entry in column (2) occurring after tariff item 8703 10 90 and the entries relating thereto, after the word “with”, the
word “only” shall be inserted;
(iii) in the entry in column (2) occurring after tariff item 8703 24 99 and the entries relating thereto, after the word “with”, the
word “only” shall be inserted;
(iv) after tariff item 8703 33 99 and the entries relating thereto, the following shall be inserted, namely:––
5
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
“8703 40
-
Other vehicles, with both spark-ignition internal combustion reciprocating
piston engine and electric motor as motors for propulsion, other than
those capable of being charged by plugging to external source of electric
power:
10
8703 40 10
---
Vehicles principally designed for transport of more than seven persons,
including driver
u
1%
8703 40 20
---
Specialised transport vehicles such as ambulances, prison vans and the like u
1%
8703 40 30
---
Motor cars
u
1%
8703 40 40
---
Three-wheeled vehicles
u
1%
8703 40 90
---
Other
u
1%
8703 50
-
Other vehicles, with both compression-ignition internal combustion piston
engine (diesel or semi-diesel) and electric motor as motors for propulsion,
other than those capable of being charged by plugging to external source
of electric power:
15
20
8703 50 10
---
Vehicles principally designed for transport of more than seven persons,
including driver
u
1%
8703 50 20
---
Specialised transport vehicles such as ambulances, prison vans and the like
u
1%
8703 50 30
---
Motor cars
u
1%
8703 50 40
---
Three-wheeled vehicles
u
1%
8703 50 90
---
Other
u
1%
8703 60
-
Other vehicles, with both spark-ignition internal combustion reciprocating
piston engine and electric motor as motors for propulsion, capable of
being charged by plugging to external source of electric power:
25
30
8703 60 10
---
Vehicles principally designed for transport of more than seven persons,
including driver
u
1%
8703 60 20
---
Specialised transport vehicles such as ambulances, prison vans and the like
u
1%
8703 60 30
---
Motor cars
u
1%
8703 60 40
---
Three-wheeled vehicles
u
1%
8703 60 90
---
Other
u
1%
8703 70
-
Other vehicles, with both compression-ignition internal combustion piston
engine (diesel or semi-diesel) and electric motor as motors for propulsion,
capable of being charged by plugging to external source of electric power:
8703 70 10
---
Vehicles principally designed for transport of more than seven persons,
including driver
u
1%
8703 70 20
---
Specialised transport vehicles such as ambulances, prison vans and the like
u
1%
8703 70 30
---
Motor cars
u
1%
8703 70 40
---
Three-wheeled vehicles
u
1%
35
40
177
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
8703 70 90
---
Other
u
1%
8703 80
-
Other vehicles, with only electric motor for propulsion:
5 8703 80 10
---
Vehicles principally designed for transport of more than seven persons,
including driver
u
1%
8703 80 20
---
Specialised transport vehicles such as ambulances, prison vans and the like
u
1%
8703 80 30
---
Motor cars
u
1%
8703 80 40
---
Three-wheeled vehicles
u
1%
10 8703 80 90
---
Other
u
1%”;
(v) for sub-heading 8703 90, tariff items 8703 90 10 and 8703 90 90 and the entries relating thereto, the following shall be
substituted, namely:––
Tariff Item
Description of goods
Unit
Rate of Duty
(1)
(2)
(3)
(4)
15 “8703 90 00
-
Other
u
1%”.
THE FOURTEENTH SCHEDULE
(See section 231)
In the Seventh Schedule to the Finance Act, 2005,––
(a) for the entry in column (4) occurring against tariff item 2402 20 10, the entry “Rs.215 per thousand” shall be substituted;
(b) for the entry in column (4) occurring against tariff item 2402 20 20, the entry “Rs.370 per thousand” shall be substituted;
(c) for the entry in column (4) occurring against tariff item 2402 20 30, the entry “Rs.215 per thousand” shall be substituted;
(d) for the entry in column (4) occurring against tariff item 2402 20 40, the entry “Rs.260 per thousand” shall be substituted;
(e) for the entry in column (4) occurring against tariff item 2402 20 50, the entry “Rs.370 per thousand” shall be substituted;
(f) for the entry in column (4) occurring against tariff item 2402 20 90, the entry “Rs.560 per thousand” shall be substituted.
178
5
THE FIFTEENTH SCHEDULE
(See section 236)
REPEALS
5
Year
No.
Short title
Extent of repeal
(1)
(2)
(3)
(4)
1946
22
The Mica Mines Labour Welfare Fund Act, 1946
Section 2.
1953
49
The Salt Cess Act, 1953
The whole.
1958
44
The Merchant Shipping Act, 1958
Section 261, clause (y) of section 262,
section 356M, section 356N, clause
(e) of section 356-O.
1963
41
The Textiles Committee Act, 1963
Sections 5A, 5D, 5E, 5F, clause (aa)
of sub-section (1) of section 7 and
clause (da) of sub-section (2) of
section 22.
1972
62
The Limestone and Dolomite Mines Labour Welfare
Fund Act, 1972
Sections 3, 4 and clauses (a) to (f) of
sub-section (2) of section 16.
1975
26
The Tobacco Cess Act, 1975
1976
55
1981
30
10
15
The whole.
20
Sections 3, 4, 5 and section 6.
The Iron Ore Mines, Manganese Ore Mines and Chrome
Ore Mines Labour Welfare Cess Act, 1976
Clause (a) of section 3.
The Cine-workers Welfare Cess Act, 1981
AMENDMENTS
25
Year
No.
Short title
Amendments
(1)
(2)
(3)
(4)
1972
62
30
The Limestone and Dolomite Mines Labour
Welfare Fund Act, 1972
For sub-section (1) of section 5,
the following sub-section shall be
substituted, namely:––
“(1) The Central Government
shall constitute a fund called the
Limestone and Dolomite Labour
Welfare Fund (hereinafter referred
to as the Fund).”.
35
1976
56
The Beedi Workers Welfare Cess Act, 1976
40
179
In sub-section (1) of section 3, for
the words “not be less than fifty
paisa or more than five rupees”,
the words “not be less than five
rupees or more than twenty-four
rupees” shall be substituted.
Constitution
of Fund.
STATEMENT OF OBJECTS AND REASONS
The object of the Bill is to give effect to the financial proposals of the
Central Government for the financial year 2016-2017. The notes on clauses
explain the various provisions contained in the Bill.
ARUN JAITLEY.
NEW DELHI;
The 23rd February, 2016.
___________
PRESIDENT’S RECOMMENDATION UNDER ARTICLES 117 AND 274 OF THE
CONSTITUTION OF INDIA
[Copy of letter No.F.2(8)-B(D)/2016, dated the 23rd February, 2016 from
Shri Arun Jaitley, Minister of Finance, to the Secretary-General, Lok Sabha.]
The President, having been informed of the subject matter of the proposed
Bill, recommends, under clauses (1) and (3) of article 117, read with clause (91)
of article 274, of the Constitution of India, the introduction of the Finance Bill,
2016 to the Lok Sabha and also recommends to the Lok Sabha the consideration
of the Bill.
2. The Bill will be introduced in the Lok Sabha immediately after the
presentation of the Budget on the 29th February, 2016.
180
181
Notes on clauses
Income-tax
Clause 2, read with the First Schedule to the Bill, specifies the
rates at which income-tax is to be levied on income chargeable to
tax for the assessment year 2016-17. Further, it lays down the
rates at which tax is to be deducted at source during the financial
year 2016-17 from income other than “Salaries” subject to such
deductions under the Income-tax Act; and the rates at which
“advance tax” is to be paid, tax is to be deducted at source from,
or paid on, income chargeable under the head “Salaries” and tax
is to be calculated and charged in special cases for the financial
year 2016-17.
“advance tax” is to be paid and income-tax is to be calculated or
charged in special cases for the financial year 2016-17.
Paragraph A of this Part specifies the rates of income-tax as
under:–
(i) in the case of every individual [other than those specifically
mentioned in sub-paras (ii) and (iii)] or Hindu undivided family
or every association of persons or body of individuals, whether
incorporated or not, or every artificial juridical person referred
to in sub-clause (vii) of clause (31) of section 2 of the Incometax Act, not being a case to which any other Paragraph of this
Part applies:–
Rates of income-tax for the assessment year 2016-17
Up to Rs. 2,50,000
Part I of the First Schedule to the Bill specifies the rates at which
income is liable to tax for the assessment year 2016-17. These
rates are the same as those specified in Part III of the First Schedule
to the Finance Act, 2015, for the purposes of deduction of tax at
source from “Salaries”, computation of “advance tax” and charging
of income-tax in special cases during the financial year 2015-16.
(iv) every company other than a domestic company at the
rate of five per cent. where the income or the aggregate of
income paid or likely to be paid and subject to deduction exceeds
ten crore rupees.
Rates for deduction of tax at source from “Salaries”, computation
of “advance tax” and charging of income-tax in special cases during
the financial year 2016-17.
Part III of the First Schedule to the Bill specifies the rates at
which income-tax is to be deducted at source from, or paid on,
income under the head “Salaries” and also the rates at which
Rs. 5,00,001 to Rs. 10,00,000
20 per cent.
Above Rs. 10,00,000
30 per cent.;
Nil
Rs. 3,00,001 to Rs. 5,00,000
10 per cent.
Rs. 5,00,001 to Rs. 10,00,000
20 per cent.
Above Rs. 10,00,000
30 per cent.;
(iii) in the case of every individual, being a resident in India,
who is of the age of eighty years or more at any time during the
previous year :–
Up to Rs. 5,00,000
The amount of tax so deducted shall be increased by a surcharge
in the case of–
(iii) every company other than a domestic company at the
rate of two per cent. where the income or the aggregate of income
paid or likely to be paid and subject to deduction exceeds one
crore rupees but does not exceed ten crore rupees;
10 per cent.
Up to Rs. 3,00,000
Part II of the First Schedule to the Bill specifies the rates at
which income-tax is to be deducted at source during the financial
year 2016-17 from income other than “Salaries”. The rates are the
same as those specified in Part II of the First Schedule to the
Finance Act, 2015 for the purposes of deduction of income tax at
source during the financial year 2015-16 except that in case of
payment of income by way of insurance commission to a person,
other than a company, resident in India , tax shall now be deducted
at source at the rate of five per cent. ,as against the earlier rate of
ten per cent.
(ii) every non-resident being a co-operative society or firm
or local authority at the rate of twelve per cent. where the income
or the aggregate of income paid or likely to be paid and subject
to deduction exceeds one crore rupees;
Rs. 2,50,001 to Rs. 5,00,000
(ii) in the case of every individual, being a resident in India,
who is of the age of sixty years or more but less than the age of
eighty years at any time during the previous year:–
Rates for deduction of tax at source during the financial year
2016-17 from income other than “Salaries”
(i) every non-resident being an individual or Hindu undivided
family or association of persons or body of individuals, whether
incorporated or not, or every artificial juridical person referred
to in sub-clause (vii) of clause (31) of section 2 of the Incometax Act, at the rate of fifteen per cent. of such tax, where the
income or the aggregate of income paid or likely to be paid and
subject to deduction exceeds one crore rupees;
Nil
Nil
Rs. 5,00,001 to Rs. 10,00,000
20 per cent.
Above Rs. 10,00,000
30 per cent.;
The surcharge in cases of persons referred to in this paragraph,
having income above one crore rupees, shall be levied at the rate
of fifteen per cent. Marginal relief will be provided.
Paragraph B of this Part specifies the rates of income-tax in the
case of every co-operative society. In such cases, the rates of tax
will continue to be the same as those specified for assessment
year 2016-17. The surcharge in cases of co-operative societies,
having income above one crore rupees shall be levied at the rate
of twelve per cent. Marginal relief will be provided.
Paragraph C of this Part specifies the rate of income-tax in the
case of every firm. In such cases, the rate of tax will continue to be
the same as that specified for assessment year 2016-17. The
surcharge in cases of firms, having income above one crore rupees
shall be levied at the rate of twelve per cent. Marginal relief will be
provided.
Paragraph D of this Part specifies the rate of income-tax in the
case of every local authority. In such cases, the rate of tax will
continue to be the same as that specified for the assessment year
2016-17. The surcharge in cases of local authorities, having income
above one crore rupees shall be levied at the rate of twelve per
cent. Marginal relief will be provided.
Paragraph E of this Part specifies the rates of income-tax in the
case of companies. In the case of domestic companies, the rate
of income-tax shall be twenty-nine per cent. of the total income
where the total turnover or gross receipts, of the company, of the
previous year 2014-15 does not exceed five crore rupees and in
181
182
all other cases the rate of income-tax shall be thirty percent of the
total income. In the case of companies other than domestic
companies, the rate of tax will continue to be the same as that
specified for assessment year 2016-17.
Surcharge in the case of domestic companies having total
income above one crore rupees but not above ten crore rupees
shall be levied at the rate of seven per cent. In the case of domestic
companies having total income above ten crore rupees, surcharge
shall be levied at the rate of twelve per cent. In the case of
companies other than domestic companies having income above
one crore rupees but not above ten crore rupees, surcharge shall
be levied at the rate of two per cent. In the case of companies
other than domestic companies having total income above ten crore
rupees, surcharge shall be levied at the rate of five per cent.
Marginal relief will be provided.
In all other cases (including sections 115JB, 115-O, 115QA,
115R, 115TA, 115TD etc.) the surcharge will be applicable at the
rate of twelve per cent.
“Education Cess” at the rate of two per cent. and “Secondary
and Higher Education Cess” at the rate of one per cent. shall
continue to be levied in all cases covered under Part III of the First
Schedule. In the cases covered under Part II of the First Schedule,
there will be no levy of the Education Cess and Secondary and
Higher Education Cess on tax deducted or collected at source in
the case of domestic company and any other person who is resident
in India. Both the cesses would continue to apply on tax deducted
at source in the case of salary payments. These would also continue
to be levied in the cases of persons not resident in India and
companies other than domestic company.
Clause 3 of the Bill seeks to amend section 2 of the Income-tax
Act relating to definitions.
Sub-clause (a) of the said clause seeks to amend clause (14)
of the aforesaid section which defines “capital asset” and item (vi)
of the said clause (14) excludes from the definition of capital asset,
inter alia, Gold Deposit Bonds issued under the Gold Deposit
Scheme, 1999 notified by the Central Government. It is proposed
to amend item (vi) of the said clause (14) so as to also exclude the
deposit certificates issued under the Gold Monetisation Scheme,
2015 from the definition of capital asset.
This amendment will take effect retrospectively from 1st April,
2016 and will, accordingly, apply in relation to assessment year
2016-2017 and subsequent years.
Sub-clause (b) of the said clause proposes to insert a new clause
(23C) to define the term “hearing” so as to include communication
of data and documents through electronic mode.
This amendment will take effect from 1st June, 2016.
Sub-clause (c) of the said clause proposes to amend clause
(24) relating to the definition of income.
Sub-clause (xviii) of clause (24) of the aforesaid section, inter
alia, provides that any assistance in the form of a subsidy or grant
or cash incentives, etc., by the Central or a State Government to
any assessee other than the subsidy or grant or reimbursement
which is taken into account for determination of the actual cost of
the asset, in accordance with Explanation 10 to clause (1) of section
43, shall be included in the definition of income.
It is proposed to amend the said sub-clause (xviii) so as to
provide that subsidy or grant by the Central Government for the
purpose of the corpus of a trust or institution established by the
Central Government or a State Government, as the case may be,
shall also not form part of income.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
Sub-clause (d) of the said clause seeks to amend clause (37A)
of the said section so as to provide that for the purposes of
deduction of tax under section 194LBB, or section 194LBC the
“rates in force” in relation to an assessment year or financial year
shall mean the rate or rates of income-tax specified in this behalf
in the Finance Act of the relevant year or rate or rates of incometax specified in an agreement entered into by the Central
Government under section 90 or notified by the Central Government
under section 90A, whichever is applicable.
This amendment will take effect from 1st June, 2016.
Clause 4 of the Bill seeks to amend section 6 of the Income-tax
Act relating to residence in India.
Under the existing provisions contained in clause (3) of the
aforesaid section, a company is said to be resident in India in any
previous year, if––
(i) it is an Indian company; or
(ii) during that year, the control and management of its affairs
is situated wholly in India.
It is proposed to amend clause (3) of the said section so as to
provide that a company shall be said to be resident in India, in any
previous year, if ––
(a) it is an Indian company; or
(b) its place of effective management, in that year, is in India.
It is also proposed to insert an Explanation to clarify the
expression ‘place of effective management’ to mean a place where
key management and commercial decisions that are necessary
for the conduct of business of an entity as a whole are, in substance,
made.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to assessment year 2017-2018 and
subsequent years.
Clause 5 of the Bill seeks to amend section 9 of the Income-tax
Act relating to income deemed to accrue or arise in India.
It is proposed to insert a new clause (e) in the Explanation 1 to
clause (i) of sub-section (1) of the said section so as to provide
that in the case of a foreign company engaged in the business of
mining of diamonds, no income shall be deemed to accrue or arise
in India through or from the activities which are confined to the
display of uncut and unassorted diamond in any special zone
notified by the Central Government in the Official Gazette in this
behalf.
This amendment will take effect retrospectively from 1st April,
2016 and will, accordingly, apply in relation to assessment year
2016-2017 and subsequent years.
Clause 6 of the Bill seeks to amend section 9A of the Incometax Act relating to certain activities not to constitute business
connection in India.
Sub-section (3) of the aforesaid section provides for the
conditions to be fulfilled for being an eligible investment fund.
It is proposed to amend clause (b) of the said sub-section so as
to provide that the eligible investment fund also means a fund
established or incorporated or registered in a country or a specified
territory notified by the Central Government in this behalf.
183
It is further proposed to amend clause (k) of the said sub-section
to omit reference to the fund not carrying on or controlling and
managing, directly or indirectly, any business from India.
These amendments will take effect from 1st April, 2017 and
will, accordingly, apply in relation to the assessment year 20172018 and subsequent years.
Clause 7 of the Bill seeks to amend section 10 of the Incometax Act relating to incomes not included in total income.
Sub-clause (A) of the said clause seeks to amend clause (12)
of the aforesaid section.
The said clause provides that the accumulated balance due
and becoming payable to an employee participating in a recognised
provident fund, is exempt from tax, subject to fulfilment of certain
conditions specified in rule 8 of Part A of the Fourth Schedule.
It is proposed to amend the said clause (12) so as to provide
that nothing contained in this clause shall apply in respect of any
amount of accumulated balance, attributable to any contributions
made on or after the 1st day of April, 2016 by an employee other
than an excluded employee, exceeding forty per cent. of such
accumulated balance due and payable in accordance with
provisions of rule 8 of Part A of the Fourth Schedule.
It is further proposed to insert a new clause (12A) in the said
section so as to provide that any payment from the National Pension
System Trust to an employee on closure of account or his opting
out of the pension scheme referred to in section 80CCD, to the
extent it does not exceed forty per cent. of the total amount payable
to him at the time of closure or his opting out of the scheme, shall
be exempt from tax.
It is also proposed to amend clause (13) of the said section so
as to provide that any payment in commutation of an annuity
purchased out of contributions made on or after the 1st day of
April, 2016, which exceeds forty per cent. of the annuity, shall be
chargeable to tax. The said clause also seeks to provide that any
payment from an approved superannuation fund by way of transfer
to the account of the employee under a pension scheme referred
to in section 80CCD notified by the Central Government shall be
exempt from tax.
These amendments will take effect from 1st April, 2017 and
will, accordingly, apply in relation to assessment year 2017-2018
and subsequent years.
Sub-clause (B) of the said clause seeks to amend clause (15)
of the said section so as to provide that the interest on deposit
certificates issued under the Gold Monetisation Scheme, 2015
notified by the Central Government shall also be exempted from
income-tax.
This amendment will take effect retrospectively from 1st April,
2016 and will, accordingly, apply in relation to assessment year
2016-2017 and subsequent years.
Sub-clause (C) of the said clause seeks to amend clause (23DA)
of the said section so as to provide that the definition of the term
“securitisation” for the purposes of the said clause shall also include
securitisation, as defined in clause (z) of sub-section (1) of section
2 of the Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002.
It is further proposed to amend clause (23FC) of the said section
so as to provide that any income of a business trust by way of
interest received or receivable from a special purpose vehicle or
the dividend referred to in sub-section (7) of section 115-O shall
also not be included in total income of such business trust.
It is also proposed to amend clause (23FD) of the said section
so as to provide that any distributed income from a business trust
received by a unit holder which is of the same nature as dividend
referred to in sub-section (7) of section 115-O shall not be included
in the total income of such unit holder.
It is also proposed to amend clause (34) of the said section so
as to provide that any income by way of dividend in excess of ten
lakh rupees shall not be exempt from tax in the case of an individual,
Hindu undivided family or a firm.
It is also proposed to amend clause (35A) of the said section so
as to provide that nothing contained in the clause shall apply to
any income by way of distributed income referred to in section
115TA received on or after the 1st day of June, 2016.
It is also proposed to amend clause (38) of the said section so
as to provide for exemption from capital gains tax in case of income
arising from transaction undertaken on a recognised stock
exchange located in the International Financial Services Centre
and the consideration for such transaction is paid or payable in
foreign currency. It is also proposed to define the expressions
International Financial Services Centre and recognised stock
exchange.
These amendments will take effect from 1st April, 2017 and
will, accordingly, apply in relation to the assessment year 20172018 and subsequent years.
Sub-clause (D) of said clause seeks to insert a new clause (48A)
in the said section so as to provide for exemption in respect of any
income of a foreign company on account of storage of crude oil in
a facility in India and sale of crude oil therefrom to any person
resident in India subject to the conditions that the storage and sale
by the foreign company is pursuant to an agreement or an
arrangement entered into by the Central Government or approved
by the Central Government and having regard to the national
interest, the foreign company and the agreement or arrangement
are notified by the Central Government in this behalf.
This amendment will take effect retrospectively from 1st April,
2016 and will, accordingly, apply in relation to the assessment
year 2016-2017 and subsequent years.
Sub-clause (E) of the said clause seeks to insert a new clause
(50) in the said section so as to provide that any income arising
from specified services provided on or after the date on which the
provisions of Chapter VIII of the Finance Act, 2016, comes into
force and chargeable to equalisation levy under that Chapter shall
be exempt. It is further proposed to provide an Explanation under
the proposed clause (50) so as to provide that the expression
“specified service” shall have the meaning assigned to it in clause
(i) of section 161 of the Chapter VIII of the Finance Act, 2016.
This amendment will take effect from 1st June, 2016.
Clause 8 of the Bill seeks to amend section 10AA of the Incometax Act relating to special provisions in respect of newly established
Units in Special Economic Zones.
The aforesaid section provides that an assessee, being an
entrepreneur as referred to in clause (j) of section 2 of the Special
Economic Zones Act, 2005, who begins from his unit for
manufacturing or producing articles or things or providing any
services during the previous year relevant to any assessment year
commencing on or after the 1st day of April, 2006, is allowed
deduction on the profits derived from the export of articles or things
or services.
It is proposed to amend sub-section (1) of the said section 10AA
so as to provide that the deduction under this section is available
184
only for an above referred enterpreneur whose unit begins to
carryout above referred activity before the 1st day of April, 2021.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
Clause 9 of the Bill seeks to amend section 17 of the Incometax Act relating to “Salary”, “perquisite” and “profits in lieu of salary”
defined.
Sub-section (2) of the aforesaid section defines “perquisite” to
include, inter alia, the amount of any contribution to an approved
superannuation fund by the employer in respect of the assesse, to
the extent it exceeds one lakh rupees.
It is proposed to amend the said sub-section so as to increase
the limit of employer’s contribution from one lakh rupees to one
lakh and fifty thousand rupees.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to assessment year 2017-2018 and
subsequent years.
Clause 10 of the Bill seeks to amend section 24 of the Incometax Act relating to deductions from income from house property.
Clause (b) of the aforesaid section provides that interest payable
on capital borrowed for acquisition or construction of a house
property shall be deducted while computing income from house
property. The second proviso to the said clause provides that a
deduction of an amount of two lakh rupees shall be allowed where
a house property referred to in sub-section (2) of section 23 (selfoccupied house property) has been acquired or constructed with
capital borrowed on or after the 1st day of April, 1999 and such
acquisition or construction is completed within three years from
the end of the financial year in which capital was borrowed.
It is proposed to amend the second proviso to clause (b) of the
said section so as to provide that the deduction of an amount of
two lakh rupees under the said proviso shall be allowed if the
acquisition or construction is completed within five years from the
end of the financial year in which the capital was borrowed.
This amendment will take effect from 1st April, 2017 and will,
accordingly apply in relation to assessment year 2017-2018 and
subsequent years.
Clause 11 of the Bill seeks to substitute sections 25A, 25AA
and 25B of the Income-tax Act relating to special provisions for
cases where unrealised rent allowed as deduction is realised
subsequently, unrealised rent received subsequently to be charged
to income tax and special provision for arrears of rent received,
with a new section 25A.
It is proposed to provide that the amount of rent received in
arrears or the amount of unrealised rent realised subsequently by
an assessee shall be charged to income-tax in the financial year
in which such rent is received or realised, whether the assessee is
the owner of the property or not in that financial year.
It is also proposed that thirty per cent. of the arrears of rent or
the unrealised rent realised subsequently by the assessee shall
be allowed as deduction.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
Clause 12 of the Bill seeks to amend section 28 of the Incometax Act relating to “Profits and gains of business or profession”.
Clause (va) of the aforesaid section, inter alia, provides that
any sum, whether received or receivable, in cash or kind, under
an agreement for not carrying out any activity in relation to any
business, is chargeable to tax as business income for business
entities.
It is proposed to amend the said clause so as to provide that
any sum received or receivable, in cash or kind, under an
agreement, for not carrying out any activity in relation to any
profession, shall also be income chargeable to income-tax under
the head “Profits and gains of business or profession”.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
Clause 13 of the Bill seeks to amend section 32 of the Incometax Act relating to depreciation.
Under the existing provisions contained in clause (iia) of subsection (1) of section 32, a sum equal to twenty per cent. of the
actual cost of new machinery or plant (other than ships and aircraft)
acquired and installed after the 31st day of March, 2005 by an
assessee engaged in the business of manufacture or production
of any article or thing or in the business of generation or generation
and distribution of power, is allowed as deduction as further
depreciation in the year of acquisition and instalment.
It is proposed to amend the said clause (iia) so as to provide
that the deduction under the said clause shall also be allowed to
the business of transmission of power.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to assessment year 2017-2018 and
subsequent years.
Clause 14 of the Bill seeks to amend section 32AC of the Incometax Act relating to investment in new plant or machinery.
Sub-section (1A) of the aforesaid section, inter alia, allows a
deduction of a sum equal to fifteen per cent. of the actual cost of
new machinery or plant (other than ship or aircrafts), acquired and
installed by an assessee being a company engaged in the business
of manufacture or production of any article or thing during any
financial year, exceeds twenty-five crore rupees, if the acquisition
and installation is made during the same financial year.
It is proposed to amend the said sub-section so as to provide
that the deduction under the said sub-section shall be allowed if
the assets are installed on or before the 31st March, 2017.
It is further proposed to insert a new proviso in the said subsection so as to provide that where the installation of the new assets
are in a year other than the year of acquisition, the deduction under
the said sub-section shall be allowed in the year in which such
new assets are installed.
These amendments will take effect retrospectively from 1st April,
2016 and will, accordingly, apply in relation to the assessment
year 2016-2017 and subsequent years.
Clause 15 of the Bill seeks to amend section 35 of the Incometax Act relating to expenditure on scientific research.
Sub-clause (i) of the said clause seeks to amend sub-section
(1) of the aforesaid section 35.
Clause (ii) of sub-section (1) of the said section provides for
weighted deduction to the extent of one hundred seventy-five per
cent. of any sum paid to a scientific research association which
has the object of undertaking scientific research or to a university,
college or other institution to be used for scientific research.
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It is proposed to amend the said clause (ii) so as to reduce the
said weighted deduction from one hundred seventy-five per cent.
to one hundred fifty per cent. from financial year 2017-2018 to
2019-2020. It is further proposed to reduce the said weighted
deduction to one hundred per cent. from the financial year 20202021 and subsequent years.
Clause (iia) of sub-section (1) of the said section provides
weighted deduction in respect of contribution to a company
engaged in scientific research.
It is proposed to amend the said clause (iia) so as to reduce the
said weighted deduction from one hundred twenty-five per cent. to
one hundred per cent. from financial year 2017-2018 and
subsequent years.
Clause (iii) of sub-section (1) of the aforesaid section provides
that weighted deduction shall be allowed in respect of contributions
made to an approved university, college or institution to be used
for research in social science or statistical research.
It is proposed to amend the said clause (iii) so as to reduce the
said weighted deduction from one hundred twenty-five per cent. to
one hundred per cent. from financial year 2017-2018 and
subsequent years.
Sub-clause (ii) of the said clause seeks to amend sub-section
(2AA) of the aforesaid section 35.
The existing provisions contained in clause (a) of sub-section
(2AA) of the said section provide for a weighted deduction to the
extent of two hundred per cent. of any sum paid to a National
Laboratory or a University or an Indian Institute of Technology or a
specified person for the purpose of an approved scientific research
programme.
It is proposed to amend the said clause (a) so as to reduce the
said weighted deduction from two hundred per cent. to one hundred
and fifty per cent. from financial year 2017-2018 to 2019-2020. It
is further proposed to reduce the said weighted deduction to one
hundred per cent. from financial year 2020-2021 and subsequent
years.
Sub-clause (iii) of the said clause seeks to amend sub-section
(2AB) of the aforesaid section 35.
The existing provisions contained in clause (1) of sub-section
(2AB) of the said section provide for weighted deduction of two
hundred per cent. of the expenditure incurred by a company or
scientific research on an approved in-house research and
development facility.
It is proposed to amend the said clause (1) so as to reduce the
said weighted deduction from two hundred per cent. to one hundred
and fifty per cent. from financial year 2017-2018 to 2019-2020. It
is further proposed to reduce the said weighted deduction to one
hundred per cent. from financial year 2020-2021 and subsequent
years.
the period starting from the year in which such payment has been
made and ending in the year in which the useful life of spectrum
comes to an end.
The proposed section further seeks to provide that the provisions
contained in sub-sections (2) to (8) of section 35ABB, shall apply
as if for the word “licence”, the word “spectrum” had been
substituted.
It is also proposed to provide an Explanation to define certain
expressions used for the purposes of the said section.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
Clause 17 of the Bill seeks to amend section 35AC of the Incometax Act relating to expenditure on eligible projects or schemes.
The existing provisions of section 35AC, inter alia, provides for
deduction for expenditure incurred by way of payment of any sum
to a public sector company or a local authority or to an approved
association or institution, etc., on certain eligible social development
project or a scheme not related to business.
It is proposed to insert a new sub-section (7) in the aforesaid
section so as to provide that the deduction under this section shall
not apply, in respect of any assessment for the assessment year
commencing on the 1st day of April, 2018.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to assessment year 2017-2018 and
subsequent year.
Clause 18 of the Bill seeks to amend section 35AD of the Incometax Act relating to deduction in respect of expenditure on specified
business.
Under the existing provisions of aforesaid section, deduction in
respect of expenditure of capital nature incurred, wholly or
exclusively, during the year for a specified business is allowed.
Sub-section (1A) of the aforesaid section provides that where the
specified business is of the nature referred to in sub-clause (i) or
sub-clause (ii) or sub-clause (v) or sub-clause (vii) or sub-clause
(viii) of clause (c) of sub-section (8), the deduction under subsection (1) shall be allowed to an amount equal to one and onehalf times of the expenditure referred to therein.
It is proposed to omit the said sub-section (1A).
It is further proposed to amend sub-section (2) of the said section
35AD so as to provide the deduction under this section to an
assessee engaged in developing, operating and maintaining or
developing, operating and maintaining the infrastructure facility.
It is also proposed to amend sub-section (8) of the said section
so as to define the expression “infrastructure facility” in the said
section in the light of amendment proposed to sub-section (2) of
the said section.
These amendments will take effect from 1st April, 2018 and
will, accordingly, apply in relation to the assessment year 20182019 and subsequent years.
These amendments will take effect from 1st April, 2018 and
will, accordingly, apply in relation to the assessment year 20182019 and subsequent years.
Clause 16 of the Bill seeks to insert a new section 35ABA in
the Income-tax Act relating to expenditure for obtaining right to
use spectrum for telecommunication services.
Clause 19 of the Bill seeks to amend section 35CCC of the
Income-tax Act relating to expenditure on agricultural extension
project.
The proposed section seeks to provide that any capital
expenditure incurred and actually paid by an assessee on the
acquisition of any right to use spectrum for telecommunication
services shall be allowed as a deduction in equal instalments over
The aforesaid section provides that where an assessee incurs
any expenditure on agricultural extension project notified by the
Board in this behalf in accordance with the guidelines as may be
prescribed, then, there shall be allowed a deduction of a sum equal
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to one and one-half times of such expenditure. Sub-section (2) of
the said section provides that where a deduction under this section
is claimed and allowed for any assessment year in respect of any
expenditure referred to in sub-section (1), deduction shall not be
allowed in respect of such expenditure under any other provisions
of the Income-tax Act for the same or any other assessment year.
It is proposed to amend the said section so as to reduce the
deduction from one hundred fifty per cent. to one hundred per
cent.
This amendment will take effect from 1st April, 2018 and will,
accordingly, apply in relation to the assessment year 2018-2019
and subsequent years.
Clause 20 of the Bill seeks to amend section 35CCD of the
Income-tax Act relating to expenditure on skill development project.
The aforesaid section provides that where a company incurs
any expenditure (not being expenditure in the nature of cost of
any land or building) on any skill development project notified by
the Board in this behalf in accordance with the guidelines as may
be prescribed, then, there shall be allowed a deduction of a sum
equal to one and one-half times of such expenditure. Sub-section
(2) of the said section provides that where a deduction under this
section is claimed and allowed for any assessment year in respect
of any expenditure referred to in sub-section (1), deduction shall
not be allowed in respect of such expenditure under any other
provisions of the Income-tax Act for the same or any other
assessment year.
It is proposed to amend the said section so as to reduce the
deduction from one hundred fifty per cent. to one hundred per
cent. from the assessment year beginning on or after the 1st day
of April, 2021.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
Clause 21 of the Bill seeks to amend section 36 of the Incometax Act relating to other deductions.
The existing provisions contained in clause (viia) of sub-section
(1) of the aforesaid section provide for deduction in respect of any
provision for bad and doubtful debts made by certain entities.
It is proposed to insert a new sub-clause (d) in clause (viia) of
sub-section (1) of the aforesaid section so as to provide that any
provision for bad and doubtful debts made by a non-banking
financial company shall be allowed a deduction of an amount not
exceeding five per cent. of the total income (computed before
making any deduction under this clause and Chapter VI-A).
It is also proposed to define the expression “non-banking
financial company”.
These amendments will take effect from 1st April, 2017 and
will, accordingly, apply in relation to the assessment year 20172018 and subsequent years.
Clause 22 of the Bill seeks to amend section 40 of the Incometax Act relating to amounts not deductible.
The provisions of section 40 specify the amounts which shall
not be deducted in computing the income chargeable under the
head “Profits and gains of business or profession”.
It is proposed to insert a new sub-clause (ib) in clause (a) of the
aforesaid section so as to provide that any consideration paid or
payable to a non-resident for a specified service on which
equalisation levy is deductible under Chapter VIII of the Finance
Act, 2016, and such levy has not been deducted, or, after deduction,
has not been paid on or before the due date specified in subsection (1) of section 139.
It is further proposed that where in respect of any such
consideration, the equalisation levy has been deducted in any
subsequent year, or, has been deducted during the previous year
but paid after the due date specified in sub-section (1) of section
139, such sum shall be allowed as a deduction in computing the
income of the previous year in which such levy has been paid.
These amendments will take effect from 1st June, 2016.
Clause 23 of the Bill seeks to amend section 43B of the Incometax Act relating to certain deductions to be only on actual payment.
The aforesaid section, inter alia, provides that certain sum
payable by the assessee shall be allowed as deduction irrespective
of the previous year in which the liability to pay such sum was
incurred if the same is actually paid on or before the due date of
furnishing of the return of income.
It is proposed to insert a new clause in the said section so as to
provide that any sum payable by the assessee to the Indian
Railways for use of railway assets shall be allowed as deduction
only, if it is actually paid on or before the due date of furnishing the
return of income of the relevant previous year.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
Clause 24 of the Bill seeks to amend section 44AA of the Incometax Act relating to maintenance of accounts by certain persons
carrying on profession or business.
It is proposed to amend the sub-section (2) of the aforesaid
section so as to provide that every person carrying on the business
shall, if the provisions of sub-section (4) of section 44AD are
applicable in his case and his income exceeds the maximum
amount which is not chargeable to income-tax, keep and maintain
such books of account and other documents for computing his
total income in accordance with the provisions of this Act.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
Clause 25 of the Bill seeks to amend section 44AB of the Incometax Act relating to audit of accounts of certain persons carrying on
business or profession.
Sub-clause (i) of the said clause seeks to amend clause (b) of
the aforesaid section. The said clause provides that every person
carrying on a profession is required to get his accounts audited
before the specified date if his gross receipts in a previous year
exceed twenty-five lakh rupees.
It is proposed to amend the said clause (b) so as to increase
the threshold limit to fifty lakh rupees.
Sub-clause (ii) of the said clause seeks to amend clause (d) of
the said section so as to provide that in the case of an assessee,
who is covered under the new proposed section 44ADA, the audit
of books of account is required if he claims that the profits and
gains from the profession are lower than the profits and gains
computed in accordance with the provisions of sub-section (1) of
the proposed new section and if his income exceeds the maximum
amount which is not chargeable to income-tax.
Sub-clause (iii) of the said clause seeks to insert a new clause
(e) in the said section so as to provide that every person carrying
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on the business shall, if the provisions of sub-section (4) of section
44AD are applicable in his case and his income exceeds the
maximum amount which is not chargeable to income-tax, keep
and maintain such books of account and other documents for
computing his total income in accordance with the provisions of
this Act.
These amendments will take effect from 1st April, 2017 and
will, accordingly, apply in relation to the assessment year 20172018 and subsequent years.
Clause 26 of the Bill seeks to amend section 44AD of the
Income-tax Act relating to special provision for computing profits
and gains of business on presumptive basis.
The existing provisions contained in the said section provides
that notwithstanding anything to the contrary contained in section
28 to 43C, in the case of an assessee engaged in any business
having total turnover or gross receipts not exceeding one crore
rupees, a sum equal to eight per cent. of the total turnover or gross
receipts, or, as the case may be, a sum higher than the aforesaid
sum declared by the assessee in his return of income, shall be
deemed to be the profits and gains of such business chargeable
to tax under the head “Profit and gains of business or profession”.
The proposed section 44AD seeks to provide for estimating
income of assessee who is engaged in any business, at a sum
equal to eight per cent. of the total turnover or gross receipts, or,
as the case may be, a sum higher than the aforesaid sum earned
by the assessee. The scheme will apply to such residential
assessee who is an individual, Hindu undivided Family or
partnership firm but not Limited Liability Partnership firm, whose
total gross receipts does not exceed two crores rupees.
It is further proposed that the scheme does not apply to an
assessee, who is carrying on profession as referred to in subsection (1) of section 44AA or earning income in the nature of
commission or brokerage or carrying on any agency business and
who has claimed deduction under any of the section 10AA, 10A,
10B, 10BA or deduction under any provisions of Chapter VI-A.
Under the scheme, the assessee will be deemed to have been
allowed the deduction under sections 30 to 38. Accordingly, the
written down value of any asset used for the purpose of the
business of the assessee will be deemed to have been calculated
as if the assessee had claimed and had actually been allowed the
deduction in respect of depreciation for the relevant assessment
years.
It is proposed to substitute sub-sections (4) and (5) of the
aforesaid section to provide that where an assessee declares
profit for any previous year in accordance with the provisions of
this section and he declares profit for any of the five assessment
years relevant to the previous year succeeding such previous year
not in accordance with the provisions of sub-section (1), he shall
not be eligible to claim the benefit of the provisions of this section
for five assessment years subsequent to the assessment year
relevant to the previous year in which the profit has not been
declared in accordance with the provisions of sub-section (1).
These amendments will take effect from 1st April, 2017 and
will, accordingly, apply in relation to the assessment year 20172018 and subsequent years.
Clause 27 of the Bill seeks to insert a new section 44ADA in the
Income-tax Act relating to special provision for computing profits
and gains of profession on presumptive basis.
The proposed new section 44ADA seeks to provide that
notwithstanding anything contained in sections 28 to 43C, in the
case of an assessee, being a resident in India, who is engaged in
a profession referred to in sub-section (1) of section 44AA and
whose total gross receipts do not exceed fifty lakh rupees in a
previous year, a sum equal to fifty per cent. of the total gross
receipts of the assessee in the previous year on account of such
profession, or as the case may be, a sum higher than the aforesaid
sum claimed to have been earned by the assessee, shall be
deemed to be the profits and gains of such profession chargeable
to tax under the head “Profits and gains of business or profession”.
It is further proposed that any deduction allowable under the
provisions of sections 30 to 38 shall, for the purposes of sub-section
(1) of the proposed section, be deemed to have been already given
full effect to and no further deduction under those sections shall
be allowed.
It is also proposed that the written down value of any asset of
profession shall be deemed to have been calculated as if the
assessee had claimed and had been actually allowed the deduction
in respect of the depreciation for each of the relevant assessment
years.
It is also proposed to provide that an assessee who claims that
his profits and gains from the profession are lower than the profits
and gains specified in sub-section (1) of the proposed section and
whose total income exceeds the maximum amount which is not
chargeable to income-tax shall be required to keep and maintain
such books of account and other documents under sub-section
(1) of section 44AA and get them audited under section 44AB.
These amendments will take effect from 1st April, 2017 and
will, accordingly, apply in relation to the assessment year 20172018 and subsequent years.
Clause 28 of the Bill seeks to amend section 47 of the Incometax Act relating to transactions not regarded as transfer.
Sub-clause (A) of said clause seeks to insert a new clause (viic)
in the said section so as to provide that any redemption of Sovereign
Gold Bond issued by the Reserve Bank of India under the Sovereign
Gold Bond Scheme, 2015, by an assessee being an individual
shall not be considered as transfer.
Sub-clause (B) of the said clause seeks to insert a new clause
(ea) in clause (xiiib) of the said section so as to provide a condition
in addition to the existing conditions, that the value of the total
assets in books of accounts of the company in any of the three
previous years preceding the previous year in which its conversion
into Limited Liability Partnership takes place does not exceed five
crore rupees.
It is further proposed that an assessee to whom the provisions
of sub-section (4) are applicable and whose total income exceeds
the maximum amount which is not chargeable to income-tax, shall
be required to keep and maintain such books of account and other
documents as required under sub-section (2) of section 44AA and
get them audited and furnish a report of such audit as required
under section 44AB.
Sub-clause (C) of the said clause seeks to insert a new clause
(xix) in the said section so as to provide that any transfer by a unit
holder of a capital asset, being a unit or units, held by him in the
consolidating plan of a mutual fund scheme, made in consideration
of the allotment to him of a capital asset, being a unit or units, in
the consolidated plan of that scheme of the mutual fund shall not
be considered as transfer for capital gain tax purposes.
It is also proposed to increase the threshold limit of one crore
rupees specified in the definition of “eligible business” to two crore
rupees in the Explanation.
It is also proposed to define the expressions “consolidating plan”,
“consolidated plan” and “mutual fund” for the purposes of the
proposed clause (xix).
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These amendments will take effect from 1st April, 2017 and
will, accordingly, apply in relation to the assessment year 20172018 and subsequent assessment years.
Clause 29 of the Bill seeks to amend section 48 of the Incometax Act relating to mode of computation.
The aforesaid section, inter alia, provides that indexation benefit
in respect of long-term capital gains as per third proviso is not
available to bonds and debentures, except capital indexed bonds
issued by the Government. Sovereign Gold Bond issued under
the Sovereign Gold Bond Scheme, 2015, is therefore, presently,
not eligible for indexation benefits. Further, it provides that the
gains on account of appreciation of rupee against a foreign currency
are accounted for while calculating full value of consideration.
It is proposed to amend section 48 so as to provide indexation
benefits to long-term capital gains arising on transfer of the said
Sovereign Gold Bond.
It is further proposed to provide that in case of an assessee
being a non-resident, any gains arising on account of appreciation
of rupee against a foreign currency at the time of redemption of
rupee denominated bond of an Indian company subscribed by him,
shall be ignored for the purpose of computation of full value of
consideration under the said section.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to assessment year 2017-2018 and
subsequent years.
Clause 30 of the Bill seeks to amend section 50C of the Incometax Act relating to special provision for full value of consideration
in certain cases.
Sub-section (1) of the aforesaid section provides that in case of
transfer of a capital asset being land or building or both, the value
adopted or assessed or assessable by the stamp valuation
authority for the purpose of payment of stamp duty in respect of
such transfer is taken as the full value of consideration for the
purpose of computation of capital gains.
It is proposed to amend the said sub-section so as to provide
that where the date of the agreement fixing the amount of
consideration and the date of registration for the transfer of the
capital asset are not the same, the value adopted or assessed or
assessable by the stamp valuation authority on the date of
agreement may be taken for the purposes of computing full value
of consideration for such transfer.
It is further proposed to provide that the said proviso shall apply
only in a case where the amount of consideration referred to therein,
or a part thereof, has been received by way of an account payee
cheque or account payee bank draft or by use of electronic clearing
system through a bank account, on or before the date of the
agreement of transfer.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to assessment year 2017-2018 and
subsequent years.
and subsequent assessment years.
Clause 32 of the Bill seeks to amend section 54GB in the Incometax relating to Capital gain on transfer of residential property not to
be charged in certain cases.
The existing provisions of section 54GB provide that capital gains
arising on account of transfer of a residential property shall not be
charged to tax if such capital gains is invested in subscription of
shares of a company which qualifies to be a small or medium
enterprise under the Micro, Small and Medium Enterprises Act,
2006 subject to other conditions specified therein.
It is proposed to amend section 54GB so as to provide that
capital gains arising on account of transfer of a residential property
shall not be charged to tax if such capital gains is invested in
subscription of shares of a company which qualifies to be an eligible
start-up subject to other specified conditions.
The existing provision of section 54GB requires that the company
should invest the proceeds in the purchase of new asset being
new plant and machinery but does not include inter alia, computers
or computer software.
It is proposed to amend section 54GB so as to provide that the
expression “new asset” includes computers or computer software
in case of technology driven start-ups so certified by the InterMinisterial Board of Certification notified by the Central Government
in the Official Gazette.
These amendments will take effect from 1st April, 2017 and
will, accordingly, apply in relation to the assessment year 2017-18
and subsequent assessment years.
Clause 33 of the Bill seeks to amend section 55 of the Incometax relating to meaning of “adjusted”, “cost of improvement” and
“cost of acquisition”.
Sub-clause (1) of clause (b) of sub-section (1) of the aforesaid
section provides that the cost of improvement in relation to a capital
asset, being goodwill of a business or a right to manufacture,
produce or process any article or thing or right to carry on any
business, shall be taken to be nil.
Further, clause (a) of sub-section (2) of the aforesaid section
provides that the cost of acquisition in relation to a capital asset,
being goodwill of a business or a trademark or brand name
associated with a business or a right to manufacture, produce or
process any article or thing or right to carry on any business,
tenancy rights, state carriage permits or loom hours, shall be taken
to be the amount of the purchase price in case the asset is
purchased by the assessee, and in any other case such cost shall
be taken to be nil.
It is proposed to amend the said sub-clause (1) of clause (b) of
sub-section (1) and clause (a) of sub-section (2) of the said section
so as to include the right to carry on the profession also under its
scope.
These amendments will take effect from 1st April, 2017 and
will, accordingly, apply in relation to the assessment year 20172018 and subsequent years.
Clause 31 of the Bill seeks to insert a new section 54EE in the
Income-tax Act relating to capital gain not to be charged on
investment in units of specified fund.
Clause 34 of the Bill seeks to amend section 56 of the Incometax Act relating to income from other sources.
It is proposed to insert section 54EE so as to provide exemption
from capital gains tax if the capital gains proceeds are invested by
an assessee in units of specified fund, as may be notified by the
Central Government in this behalf.
The aforesaid section, inter alia, provide for chargeability of
income from other sources, in case any money, immovable property
or other property with or without consideration is received by an
assessee being an individual or an Hindu undivided family.
These amendments will take effect from 1st April, 2017 and
will, accordingly, apply in relation to the assessment year 2017-18
It is proposed to amend the said section so as to provide
exemption from tax in the hands of an individual or a Hindu
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undivided family, on receipt of shares as a consequence of
demerger or amalgamation of a company.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
Clause 35 of the Bill seeks to amend section 80 of the Incometax Act relating to submission of return for losses.
The aforesaid section, inter alia, provides that a loss which has
not been determined in pursuance of a return filed in accordance
with the provisions of sub-section (3) of section 139, shall not be
carried forward and set off under sub-section (1) of section 72 or
sub-section (2) of section 73 or sub-section (1) or sub-section (3)
of section 74 or sub-section (3) of section 74A.
It is proposed to amend the said section 80 so as provide that
the loss under sub-section (2) of section 73A shall also be not
allowed to be carried forward and set off if such loss has not been
determined in pursuance of a return filed in accordance with the
provisions of sub-section (3) of section 139.
This amendment will take effect retrospectively from 1st April,
2016 and will, accordingly, apply in relation to the assessment
year 2016-2017 and subsequent years.
Clause 36 of the Bill seeks to amend section 80CCD of the
Income-tax Act relating to deduction in respect of contribution to
pension scheme of Central Government.
Sub-section (3) of the aforesaid section provides that the whole
of the amount standing to the credit of the assesse including the
accrual on the amount received by the assesse or nominee is taxed
in the year of such receipt on account of closure or his opting out
of the pension scheme.
It is proposed to amend the sub-section so as to provide that
any amount received by the nominee, on the death of the assessee,
under the pension scheme referred to in clause (a) of the said
sub-section, is exempt from tax.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to assessment year 2017-2018 and
subsequent years.
Clause 37 of the Bill seeks to substitute section 80EE of the
Income-tax Act relating to deduction in respect of interest on loan
taken for residential house property.
The aforesaid section provides that deduction is allowable on
the expenditure incurred by an assessee in excess of ten per cent.
of his total income towards payment of rent upto a maximum of
two thousand rupees per month or twenty-five per cent. of his total
income for the year, whichever is less, and subject to such other
conditions or limitations as may be prescribed, having regard to
the area or place in which such accommodation is situated and
other relevant considerations.
It is proposed to increase the maximum amount of deduction
allowable under the said section to five thousand rupees per month.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to assessment year 2017-2018 and
subsequent years.
Clause 39 of the Bill seeks to amend section 80-IA of the Incometax Act relating to deductions in respect of profits and gains from
industrial undertakings or enterprises engaged in infrastructure
development, etc.
Clause (i) of sub-section (4) of aforesaid section, inter alia,
provides that any enterprise carrying on business of developing or
operating and maintaining any infrastructure facility shall be allowed
deduction as specified subject to conditions specified therein.
It is proposed to amend the said section so as to provide that
this section shall not apply to any enterprise which starts the
development or operation and maintenance of the infrastructure
facility on or after the 1st day of April, 2017.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
Clause 40 of the Bill seeks to amend section 80-IAB of the
Income-tax Act relating to deductions in respect of profits and gains
by an undertaking or enterprise engaged in development of Special
Economic Zone.
Under the aforesaid section, an enterprise being a developer in
a notified Special Economic Zone, who has commenced the
business of developing a Special Economic Zone on or after 1st
day of April, 2005 shall be allowed deduction of an amount equal
to one hundred per cent. of the profits and gains derived from
such business.
It is proposed to amend the said section so as to provide that
this section shall not apply to any enterprise which commences
the business activity on or after the 1st day of April, 2017.
The provisions contained in the existing section provides for
deduction upto one lakh rupees in respect of interest payable on
loan taken by an assessee being an individual from any financial
institution for the purpose of acquisition of a residential property.
This benefit was available during the assessment years begining
on the 1st day of April, 2014 and ending on the 31st day of March,
2016.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
It is proposed to substitute the said section so as to provide a
deduction for those who buy residential house property for the first
time, in respect of interest on loan taken from any financial institution
upto fifty thousand rupees subject to other conditions specified
therein. It is proposed to extend the benefit of deduction till
repayment of loan continues.
It is proposed to amend the Income-tax Act so as to provide a
deduction of one hundred per cent. of the profits and gains derived
by an eligible start-up from a business involving innovation,
development, deployment or commercialisation of new products,
processes or services driven by technology or intellectual property.
The benefit of deduction of hundred per cent. of the profit derived
from such business can be availed by an eligible start-ups for three
consecutive assessment years out of five years, at the option of
the assessee, subject to incorporation before 1st day of April, 2019.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation assessment year 2017-2018 and
subsequent years.
Clause 38 of the Bill seeks to amend section 80GG of the
Income-tax Act relating to deductions in respect of rents paid.
Clause 41 of the Bill seeks to insert a new section 80-IAC in the
Income-tax Act relating to Special provisions in respect of specified
business.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent assessment years.
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Clause 42 of the Bill seeks to amend section 80-IB of the Incometax Act relating to deduction in respect of profits and gains from
certain industrial undertakings other than infrastructure
development undertakings.
Sub-section (9) of the aforesaid section, inter alia, provides
deduction at the rate of one hundred per cent. of the profits of an
undertaking located in specified areas subject to fulfilment of certain
conditions.
It is proposed to amend clauses (ii), (iv) and (v) of the said subsection so as to provide that such clauses of the said section shall
not apply to any enterprise which commences the business activity
on or after the 1st day of April, 2017.
These amendments will take effect from 1st April, 2017 and
will, accordingly, apply in relation to the assessment year 20172018 and subsequent years.
Clause 43 of the Bill seeks to insert a new section 80-IBA in the
Income-tax Act relating to deductions in respect of profits and gains
from housing project.
The proposed new section seeks to provide for hundred per
cent. deduction of the profits and gains of an assessee developing
and building housing projects, if the project is approved by the
competent authority on or before the 31st March, 2019 subject to
the conditions specified therein. The assessee is required to
complete the said project within three years failing which the entire
deduction claimed in previous years shall be deemed as his income.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation assessment year 2017-2018 and
subsequent years.
Clause 44 of the Bill seeks to substitute a new section for section
80JJAA of the Income-tax Act relating to deduction in respect of
employment of new employees.
The existing section provide for a deduction of thirty per cent. of
additional wages paid to the new regular workmen in a factory for
three years. The provisions apply to business of manufacture of
goods in a factory.
It is proposed to extend the benefit to all assessees who are
required to get their accounts audited under section 44AB. Further,
it is also proposed to liberalise the eligibility condition relating to
minimum number of persons employed and the total number of
days for which they must be employed during the year.
Deduction under the proposed provisions will be available in
respect of cost incurred on those employees whose total
emoluments are less than or equal to twenty-five thousand rupees
per month. No deduction, however, shall be allowed in respect of
cost incurred on those employees for whom the entire contribution
is paid by the Government under the Employees’ Pension Scheme
notified in accordance with the Employees’ Provident Funds and
Miscellaneous Provisions Act, 1952.
This amendment will take effect from 1st April, 2017 will,
accordingly, apply in relation assessment year 2017-2018 and
subsequent years.
Clause 45 of the Bill seeks to amend section 87A of the Incometax Act relating to rebate of income-tax in case of certain individuals.
The aforesaid section provides that an individual resident, whose
total income does not exceed five hundred thousand rupees, is
eligible for rebate in income-tax equal to hundred per cent. of such
income-tax or two thousand rupees, whichever is less.
It is proposed to increase the amount of rebate allowable under
the said section from the existing two thousand rupees to five
thousand rupees.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to assessment year 2017-2018 and
subsequent years.
Clause 46 of the Bill seeks to amend section 92CA of the Incometax Act relating to reference to Transfer Pricing Officer.
It is proposed to amend sub-section (3A) of the aforesaid section
so as to provide that in the circumstances referred to in clause (ii)
or clause (viii) of Explanation (1) to section 153, if the period of
limitation available to the Transfer Pricing Officer for making an
order is less than sixty days, then such remaining period shall be
extended to sixty days.
This amendment will take effect from 1st June, 2016.
Clause 47 of the Bill seeks to amend section 92D of the Incometax Act relating to maintenance and keeping of information and
document by persons entering into an international transaction or
specified domestic transaction.
The aforesaid section provides that every person who has
entered into an international transaction or specified domestic
transaction shall keep and maintain such information and document
in respect thereof as may be prescribed. The said section further
provides that the Assessing Officer or the Commissioner (Appeals)
may in the course of any proceeding require such person to furnish
the information and document within the period of thirty days of it
being called for or within the extended period.
It is proposed to amend the said section so as to provide that
the person being a constituent entity of an international group,
referred to in section 286, shall also keep and maintain such
information and document in respect of the international group as
may be prescribed.
It is further proposed to amend the said section so as to provide
that without prejudice to the power of the Assessing Officer or the
Commissioner (Appeals) to call for the information and document,
the person being a constituent entity of an international group,
shall furnish the prescribed information and document to the
prescribed authority referred to in section 286 in the prescribed
manner on or before the date to be prescribed.
These amendments will take effect from 1st April, 2017 and
will, accordingly, apply in relation to the assessment year 20172018 and subsequent years.
Clause 48 of the Bill seeks to amend section 112 of the Incometax Act relating to tax on long-term capital gains.
Sub-clause (iii) of clause (c) of sub-section (1) of the aforesaid
section, inter alia, provides that long-term capital gains arising from
transfer of a capital asset, being unlisted securities, shall be
chargeable to tax at the rate of ten per cent.
It is proposed to amend the said sub-clause (iii) so as to provide
that long-term capital gains arising from transfer of a capital asset
being, shares of a company not being a company in which the
public are substantially interested, shall also be chargeable to tax
at the rate of ten per cent.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to assessment year 2017-2018 and
subsequent years.
Clause 49 of the Bill seeks to insert a new section 115BA in the
Income-tax Act relating to tax on income of certain domestic
companies.
Sub-section (1) of the proposed new section provides that the
income-tax payable in respect of the total income of a person being
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domestic company, for any previous year relevant to the
assessment year beginning on or after the 1st day of April, 2017
shall, at the option of such person, be computed at the rate of
twenty-five per cent., if the conditions contained in sub-section (2)
of the said section are satisfied.
Sub-section (2) of the proposed new section provides that the
conditions referred to in sub-section (1) are the following, namely:–
(a) the company has been set up and registered on or after
the 1st day of March, 2016;
(b) the company is engaged in the business of manufacturing
or production of any article or thing; and
(c) the total income of the company has been computed, –
(i) without any deduction under the provisions of section
10AA or clause (iia) of sub-section (1) of section 32 or section
32AC or section 32AD or section 33AB or section 33ABA or
sub-clause (ii) or sub-clause (iia) or sub-clause (iii) of subsection (1) or sub-section (2AA) or sub-section (2AB) of
section 35 or section 35AC or section 35AD or section 35CCC
or section 35CCD or under any provisions of Chapter VI-A
under the heading “C.– Deductions in respect of certain
incomes” other than the provisions of section 80JJAA;
(ii) without set off of any loss carried forward from any
earlier assessment year if such loss is attributable to any of
the deductions referred to in sub-clause (i); and
(iii) depreciation under section 32, other than clause (iia)
of sub-section (1) of the said section is determined in the
manner as may be prescribed.
Sub-section (3) of the proposed new section provides that
the loss referred to in sub-clause (ii) of clause (c) of sub-section
(2) shall be deemed to have been already given full effect to and
no further deduction for such loss shall be allowed for any
subsequent year.
Sub-section (4) of the proposed new section provides that
the option by the person referred to in sub-section (1) shall be
exercised in the prescribed manner on or before the due date
specified under sub-section (1) of section 139 for furnishing the
return of income for the relevant previous year.
These amendments will take effect from 1st April, 2017 and
will, accordingly, apply in relation the assessment year 2017-2018
and subsequent years.
Clause 50 of the Bill seeks to insert a new section 115BBDA in
the Income-tax Act relating to tax on certain dividends received
from domestic companies.
The provisions of the Income-tax Act provide that dividend
income shall be exempt if dividend distribution tax is paid on such
income.
It is proposed to insert a new section 115BBDA in the said Act
so as to provide that any income by way of dividend declared,
distributed or paid by a domestic company, in excess of ten lakh
rupees shall be chargeable to tax at the rate of ten per cent. in the
case of an individual, Hindu undivided family or a firm who is a
resident in India.
It is further proposed to provide that no deduction in respect of
any expenditure or allowance or set off of loss shall be allowed in
computing the income by way of dividend and to define the term
dividends.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to assessment year 2017-2018 and
subsequent years.
Clause 51 of the Bill seeks to amend section 115BBE of the
Income-tax Act relating to tax on income referred to in section 68
or section 69 or section 69A or section 69B or section 69C or
section 69D.
Sub-section (1) of the section 115BBE, inter alia, provides that
the income relating to the above referred sections are taxable at
the rate of thirty per cent. Sub-section (2) of the said section
115BBE provides that no deduction in respect of any expenditure
or allowances in relation to income referred to in the aforesaid
sections shall be allowable.
It is proposed to amend the said sub-section (2) of section
115BBE so as to provide that the set off of any loss shall also be
not allowable in respect of income under the aforesaid sections.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
Clause 52 of the Bill seeks to insert a new section 115BBF in
the Income-tax Act relating to tax on income from patents.
The proposed new section 115BBF seeks to provide that where
the total income of an eligible assessee includes any income by
way of royalty in respect of a patent developed and registered in
India, the income-tax payable shall be the aggregate of the amount
of income-tax calculated on the income by way of royalty in respect
of such patent, at the rate of ten per cent., and the amount of
income-tax with which the assessee would have been chargeable
had his total income been reduced by the income referred to in the
proposed sub-clause (a) of sub-section (1) of the propsed section.
It is further proposed to provide that the assessee shall not be
eligible for deduction in respect of any expenditure or allowance
under any provisions of the said Act in computing his income
referred to in clause (a) of sub-section (1) of the proposed section.
It is also proposed to provide an Explanation in the said section
to define certain expressions used therein.
These amendments will take effect from 1st April, 2017 and
will, accordingly, apply in relation to the assessment year
2017-2018 and subsequent years.
Clause 53 of the Bill seeks to amend section 115JB of the
Income-tax Act relating to special provision for payment of tax by
certain companies.
Item (a) of sub-clause (I) of the said clause seeks to insert a
new clause (fd) in Explanation 1 to sub-section (1) of the aforesaid
section so as to provide that the book profit shall be increased by
an amount or amounts of expenditure relatable to income, by way
of royalty in respect of patent chargeable to tax in accordance with
the provisions of section 115BBF.
It is further proposed to insert a new clause (iig) in the long line
to the said Explanation 1 so as to provide that the amount of income,
by way of royalty in respect of patent chargeable to tax in
accordance with the provisions of section 115BBF, shall be reduced
from the book profit, if any such amount is credited to the profit or
loss account.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
Item (b) of sub-clause (i) of the said clause seeks to insert an
Explanation so as to provide that the provisions of the said section,
shall not be applicable and shall be deemed never to have been
applicable to an assessee, being a foreign company, if––
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(i) the assessee is a resident of a country or a specified
territory with which India has an agreement referred to in subsection (1) of section 90 or the Central Government has adopted
any agreement under sub-section (1) of section 90A and the
assessee does not have a permanent establishment in India in
accordance with the provisions of such agreement; or
(ii) the assessee is a resident of a country with which India
does not have an agreement referred to in clause (i) and the
assessee is not required to seek registration under any law for
the time being in force relating to companies.
This amendment will take effect retrospectively from 1st April,
2001 and will, accordingly, apply in relation to the assessment
year 2001-2002 and subsequent years.
Sub-clause (II) of the said clause seeks to insert a new subsection (7) in the said section so as to provide that in case of a
company, being a unit of an International Financial Services Centre
and deriving its income solely in convertible foreign exchange, the
rate of tax under section 115JB shall be nine per cent. and also to
define certain expressions used therein.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
Clause 54 of the Bill seeks to insert a new Chapter XII-BC in the
Income-tax Act on special provisions relating to foreign company
said to be resident in India.
Sub-section (1) of the proposed new section 115JH provides
that where a foreign company is said to be resident in any previous
year and such foreign company has not been resident in India in
any of the preceding previous year, then, the provisions of the
Income-tax Act relating to computation of total income, treatment
of unabsorbed depreciation, set off or carry forward and set off of
losses, special provisions relating to avoidance of tax and the
collection and recovery shall apply with such exceptions,
modifications and adaptations on fulfilment of such conditions as
may be notified by the Central Government in this behalf.
Proviso to sub-section (1) of the proposed section provides that
in case determination regarding residence of foreign company has
been done in the assessment proceedings relevant to any previous
year, then, the provisions of the proposed new Chapter shall also
apply in respect of previous years succeeding the relevant previous
year which ends on or before the date on which the determination
has been made.
Sub-section (2) of the proposed section provides that on failure
to comply with the conditions provided in the notification issued
under sub-section (1), the provisions of the Income-tax Act shall
apply without any modification and the necessary rectification may
be undertaken by the Assessing Officer and the period of four
years shall be available for such rectification from the date of failure.
Sub-section (3) of the proposed section provides that every
notification issued under the proposed new section 115JH shall
be laid before each House of Parliament.
This amendment will take effect from 1st April 2017 and will,
accordingly, apply to the assessment year 2017-2018 and
subsequent years.
chargeable under this section in respect of any amount declared,
distributed or paid by the specified domestic company by way of
dividends (whether interim or otherwise) to a business trust out of
its current income on or after the specified date. It is further
proposed to provide that nothing contained in the proposed subsection shall apply in respect of any amount declared, distributed
or paid, at any time, by the specified domestic company by way of
dividends (whether interim or otherwise) out of its accumulated
profits and current profits up to the specified date. It is also proposed
to define the expression “specified domestic company” and
“specified date” for the purposes of the proposed sub-section.
These amendments will take effect from 1st June, 2016.
Sub-clause (b) of the said clause seeks to insert a new subsection (8) in the said section so as to provide that no tax on
distributed profits shall be chargeable in respect of the total income
of a company being a unit of an International Financial Services
Centre, deriving income solely in convertible foreign exchange,
for any assessment year on any amount declared, distributed or
paid by such company, by way of dividends (whether interim or
otherwise) on or after the 1st April, 2017 out of its current income,
either in the hands of the company or the person receiving such
dividend and also to define certain expressions used therein.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
Clause 56 of the Bill seeks to amend section 115QA of the
Income-tax Act relating to tax on distributed income to shareholders.
The Explanation to sub-section (1) of the aforesaid section
provides for definition of certain expressions for the purposes of
the said section.
It is proposed to amend clause (i) of the said Explanation to
substitute the reference of section 77A of the Companies Act, 1956
with the words “any law for the time being in force relating to
companies” and also to amend clause (ii) to provide that “distributed
income” shall mean the consideration paid by the company on
buy-back of shares as reduced by the amount, which was received
by the company for issue of such shares, determined in the manner
as may be prescribed.
These amendments will take effect from 1st June, 2016.
Clause 57 of the Bill seeks to amend section 115TA of the
Income-tax Act relating to tax on distributed income to investors.
It is proposed to amend the said section so as to provide that
nothing contained in this section shall apply in respect of any
income distributed by the securitisation trust to its investors on or
after the 1st day of June, 2016.
This amendment will take effect from 1st June, 2016.
Clause 58 of the Bill seeks to amend section 115TC of the
Income-tax Act relating to securitisation trust to be assessee in
default.
The Explanation to the aforesaid section defines various
expressions for the purposes of section 115TA, section 115TB
and also the said section 115TC.
Clause 55 of the Bill seeks to amend section 115-O of the
Income-tax Act relating to tax on distributed profits of domestic
companies.
It is proposed to amend the definition of “investor” as provided
in clause (a) of the said Explanation so as to include a person who
has invested in the security receipt as defined under the
Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002.
Sub-clause (a) of the said clause seeks to insert a new subsection to provide that no tax on distributed profits shall be
It is further proposed to amend the definition of “securitisation
trust” provided in clause (d) of the said Explanation so as to include
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a trust set up by a securitisation company or a reconstruction
company formed, in accordance with the provisions of the
Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002 or in pursuance of any
guidelines and directions issued by the Reserve Bank of India.
It is also proposed to provide that the expression “security
receipt” shall have the same meaning as assigned to it in in clause
(zg) of sub-section (1) of section 2 of the Securitisation and
Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002.
These amendments will take effect from 1st June, 2016.
Clause 59 of the Bill seeks to insert a new section 115TCA in
the Income-tax Act relating to tax on income from securitisation
trusts.
Sub-section (1) of the proposed new section seeks to provide
that any income accruing or arising to, or received by, a person,
being an investor of a securitisation trust, out of investments made
in the securitisation trust, shall be chargeable to income-tax in the
same manner as if it were the income accruing or arising to, or
received by, such person had the investments made by the
securitisation trust been made directly by him.
Sub-section (2) of the proposed new section seeks to provide
that the income paid or credited by the securitisation trust shall be
deemed to be of the same nature and in the same proportion in
the hands of the person referred to in sub-section (1), as if it had
been received by, or had accrued or arisen to, the securitisation
trust during the previous year.
Sub-section (3) of the proposed new section seeks to provide
that the income accruing or arising to, or received by, the
securitisation trust, during a previous year, if not paid or credited
to the person referred to in sub-section (1), shall be deemed to
have been credited to the account of the said person on the last
day of the previous year in the same proportion in which such
person would have been entitled to receive the income had it been
paid in the previous year.
Sub-section (4) of the proposed new section seeks to provide
that the securitisation trust and the person responsible for crediting
or making payment of the income on behalf of securitisation trust
shall furnish, within such time, as may be prescribed, to the person
who is liable to tax in respect of such income and to the prescribed
income-tax authority, a statement in such form and verified in such
manner, giving details of the nature of the income paid or credited
during the previous year and such other relevant details, as may
be prescribed.
Sub-section (5) of the proposed new section seeks to provide
that any income included in the total income of the person referred
to in sub-section (1) in a previous year shall not be included in the
total income of such person in the previous year in which such
income is actually paid to him by the securitisation trust.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
Clause 60 of the Bill seeks to insert a new Chapter XII-EB
consisting of new sections 115TD, 115TE and 115TF in the Incometax Act on special provisions relating to tax on accreted income of
certain trusts and institutions.
Sub-section (1) of the proposed new section 115TD provides
that notwithstanding anything contained in any other provision of
the Act, a trust or institution registered under section 12AA in any
previous year shall be liable to tax on accreted income in the event
of certain eventualities mentioned in the proposed new section,
as on the specified date, at the maximum marginal rate, in addition
to the income-tax chargeable in respect of the total income.
Sub-section (2) of the proposed section provides that the
accreted income for the purposes of sub-section (1) means the
amount by which the aggregate fair market value of the total assets
of the trust or the institution, as on the specified date, exceeds the
total liability of such trust or institution computed in accordance
with the method of valuation as may be prescribed.
It is further proposed to provide that while computing the accreted
income in respect of a case referred to in clause (c) of sub-section
(1), assets and liabilities, if any, related to such asset, which have
been transferred to the trust, institution or other organisation as
specified therein within a period of twelve months from the date of
dissolution, shall be ignored.
Sub-section (3) of the proposed section provides for specific
situations under which a trust or institution can be said to have
converted into any form which is not eligible for grant of registration.
The additional income-tax to be charged shall be in addition to
the income-tax chargeable in respect of the total income of such
trust or institution whether income-tax is payable by the trust or
the institution on its total income or not. It also provides that the
amount of tax shall be remitted within fourteen days of the date of
occurrence of events specified in various situations.
The proposed section 115TE provides for the levy of interest, in
case of failure to pay tax within the time provided, at the rate of
one per cent. for every month and part thereof of such failure.
The proposed section 115TF provides that in case of failure of
payment of tax, the principal officer or the trustee and the trust or
the institution shall be deemed to be an assessee in default in
respect of the amount of tax payable and all provisions of the
Income-tax Act relating to recovery and collection of taxes shall
apply to them.
This amendment will take effect from 1st June, 2016.
Clause 61 of the Bill seeks to amend section 115UA of the
Income-tax Act relating to tax on income of unit holder and business
trust.
It is proposed to amend sub-section (3) of the said section to
provide that any distributed income from a business trust received
by a unit holder which is of the same nature as dividend referred to
in sub-section (7) of section 115-O shall not be included in the
total income of such unit holder.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
Clause 62 of the Bill seeks to amend section 119 of the Incometax Act relating to instructions to subordinate authorities.
Clause (a) of sub-section (2) of the aforesaid section empowers
the Board to issue directions or instructions for the purpose of
proper and efficient management of the work of assessment and
collection of revenue provided such directions are not prejudicial
to the assessee.
It is proposed to make a reference to section 270A in the said
clause (a) of sub-section (2) of section 119, so as to enable the
Board to issue directions and instructions in respect of section
270A of the Income-tax Act, as well.
The proposed amendment is consequential to the insertion of a
new section 270A in the Income-tax Act which provides for levy of
penalty for under-reporting and misreporting of income.
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This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
Clause 63 of the Bill seeks to amend section 124 of the Incometax Act relating to jurisdiction of Assessing Officers.
Sub-section (3) of the aforesaid section, inter alia, provides that
no person shall be entitled to call in question the jurisdiction of an
Assessing Officer in a case where return is filed under section
139, after the expiry of one month from the date on which he was
served with a notice under sub-section (1) of section 142 or subsection (2) of section 143 or after the completion of the assessment,
whichever is earlier.
It is proposed to amend the said sub-section (3) so as to provide
that in a case where a search is initiated under section 132 or
books of account, other documents or any assets are requisitioned
under section 132A, no person shall be entitled to call in question
the jurisdiction of an Assessing Officer after the expiry of one month
from the date on which he was served with a notice under subsection (1) of section 153A or sub-section (2) of section 153C or
after the completion of the assessment, whichever is earlier.
This amendment will take effect from 1st June, 2016.
Clause 64 of the Bill seeks to amend section 133C of the Incometax Act relating to power to call for information by prescribed incometax authority.
The existing provisions of the said section empowers the
prescribed income-tax authority to issue notices calling for
information and documents for the purpose of verification of
information in its possession.
It is proposed to amend the said section so as to further provide
that the information and documents so obtained by the prescribed
income-tax authority may be processed and the outcome of such
processing may be made available to the Assessing Officer for
further necessary action, if any.
This amendment will take effect from 1st June, 2016.
Clause 65 of the Bill seeks to amend section 139 of the Incometax Act relating to return of income.
Sub-clause (i) of said clause seeks to amend sub-section (1),
sub-section (4), sub-section (5) and sub-section (9) of the said
section.
Sub-section (1) of the aforesaid section provides that every
person referred to therein shall file a return of income on or before
the due date. The sixth proviso to the said section provides that
every person, being an individual or a Hindu undivided family or
an association of persons or a body of individuals, whether
incorporated or not, or an artificial juridical person, if his total income
or the total income of any other person in respect of which he is
assessable under this Act during the previous year, without giving
effect to the provisions of section 10A or section 10B or section
10BA or Chapter VI-A, exceeded the maximum amount which is
not chargeable to income-tax shall, on or before the due date,
furnish a return of his income or the income of such other person
during the previous year, in the prescribed form and verified in the
prescribed manner and setting forth such other particulars as may
be prescribed.
Sub-section (4) of the said section provides that any person
who has not furnished a return within the time allowed to him under
sub-section (1), or within the time allowed under a noticed issued
under sub-section (1) of section 142, may furnish the return for
any previous year at any time before the expiry of one year from
the end of the relevant assessment year or before the completion
of the assessment, whichever is earlier.
Sub-section (5) of the said section provides that if any person,
having furnished a return under sub-section (1), or in pursuance
of a notice issued under sub-section (1) of section 142 discovers
any omission or any wrong statement therein, he may furnish a
revised return at any time before the completion of the assessment,
whichever is earlier.
Clause (aa) of Explanation to sub-section (9) of the said section
provides that a return of income shall be regarded as defective
unless the self-assessment tax together with interest, if any,
payable in accordance with the provisions of section 140A, has
been paid on or before the date of furnishing of the return.
It is proposed to amend the sixth proviso to sub-section (1) of
the said section so as to provide that a person, who during the
previous year, earns income under clause (38) of section 10 and
such income exceeds the maximum amount which is not
chargeable to tax in his case, shall also be liable to file return of
income for the previous year in the prescribed form and verified in
the prescribed manner.
It is also proposed to substitute sub-section (4) of said section
so as to provide that any person who has not furnished a return
within the time allowed to him under sub-section (1), may furnish
the return for any previous year at any time before the end of the
relevant assessment year or before the completion of the
assessment, whichever is earlier.
It is also proposed to substitute sub-section (5) of the said section
so as to provide that if any person, having furnished a return under
sub-section (1), or under sub-section (4), discovers any omission
or any wrong statement therein, he may furnish a revised return at
any time before the expiry of one year from the end of the relevant
assessment year or before the completion of the assessment,
whichever is earlier.
It is also proposed to omit clause (aa) of the Explanation to subsection (9) of said section to provide that a return which is otherwise
valid would not be treated defective merely because selfassessment tax and interest payable in accordance with the
provisions of section 140A, has not been paid on or before the
date of furnishing of the return.
These amendments will take effect from 1st day of April, 2017
and will, accordingly, apply in relation to the assessment year 20172018 and subsequent years.
Sub-clause (ii) of the said clause seeks to amend sub-section
(3) of the said section. Sub-section (3) of the said section provides
that if any person who has sustained a loss in any previous year
under the head profits and gains of business or profession or under
the head capital gains and claims that the loss or any part thereof
should be carried forward under sub-section (1) of section 72, or
sub-section (2) of section 73, or sub-section (1) or sub-section (3)
of section 74 or sub-section (3) of section 74A, he may furnish,
within the time allowed under sub-section (1), a return of loss in
the prescribed form and verified in the prescribed manner and
containing such other particulars as may be prescribed, and all
the provisions of this Act shall apply as if it were a return under
sub-section (1).
It is proposed to amend sub-section (3) of the said section so
as to give the reference of sub-section (2) of section 73A in the
said section.
This amendment will take effect retrospectively from 1st April,
2016.
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Clause 66 of the Bill seeks to amend section 143 of the Incometax Act relating to assessment.
Clause 67 of the Bill seeks to amend section 147 of the Incometax Act relating to income escaping assessment.
Sub-clause (a) of the said clause seeks to amend clause (a) of
sub-section (1) of said section.
Under the existing provisions of the aforesaid section, if the
Assessing Officer has reason to believe that any income chargeable
to tax has escaped assessment, he may assess or reassess such
income or re-compute the loss or any other allowance. Explanation
2 to the said section provides certain situations which shall also
be deemed to be the cases where income chargeable to tax has
escaped assessment.
Clause (a) of sub-section (1) of the aforesaid section provides
that a return filed is to be processed and total income or loss is
computed after making the adjustments on account of any
arithmetical error in the return or on account of an incorrect claim,
if such incorrect claim is apparent from any information in the return.
It is proposed to expand the scope of adjustments that can be
made at the time of processing under sub-section (1) of the said
section to further include adjustments as under:–
(i) disallowance of loss claimed, if return of the previous year
for which set off of loss is claimed is furnished beyond the due
date specified under sub-section (1) of section 139;
(ii) disallowance of expenditure indicated in the audit report
but not taken into account in computing the total income in the
return;
(iii) disallowance of deduction claimed under sections 10AA,
80-IA, 80-IAB, 80-IB, 80-IC, 80-ID or section 80-IE, if the return
is furnished beyond the due date specified under sub-section
(1) of section 139; or
(iv) addition of income appearing in Form 26AS or Form 16A
or Form 16 but not included in computing the total income in the
return.
It is further proposed to provide an opportunity to the assessee,
before making any adjustment under clause (a) of sub-section (1)
of section 143 to explain and rectify the same within thirty days of
issuance of such intimation and the response so received be
considered before making such adjustments. In case no response
is received within such time, the adjustment of the amount indicated
in the intimation be made.
Under the existing provision of sub-section (1D) of the said
section 143, processing of a return is not necessary where a notice
has been issued to the assessee under sub-section (2) of that
section.
It is proposed to amend sub-section (1D) of the said section so
as to provide that before making an assessment under sub-section
(3) of that section, a return shall be processed under sub-section
(1) of section 143.
These amendments will take effect from the 1st April, 2017 and
will, accordingly, apply in relation to the assessment year 20172018 and subsequent years.
Sub-clause (b) of the said clause seeks to substitute sub-section
(2) of the said section. The existing provisions of sub-section (2)
of the aforesaid section provide that, if the Assessing Officer under
the circumstances specified therein shall serve on the assessee
a notice requiring him to produce, or cause to be produced on a
specified date, any evidence on which the assessee may rely in
support of the return.
It is proposed to substitute the said sub-section (2) so as to
provide that notice under the said sub-section may be served on
the assessee by the Assessing Officer or, as the case may be, the
prescribed income-tax authority under the circumstances specified
therein requiring him to produce or caused to be produced on a
specified date before the Assessing Officer any evidence on which
the assessee may rely in support of the return.
This amendment will take effect from 1st June, 2016.
It is proposed to amend the said Explanation 2 so as to provide
that a case shall be deemed to be a case where income chargeable
to tax has escaped assessment where on the basis of information
or document received from the prescribed income-tax authority it
is noticed by the Assessing Officer that the income of the assessee
exceeds the maximum amount not chargeable to tax, or the
assessee has understated the income or has claimed excessive
loss, deduction, allowance or relief in the return.
This amendment will take effect from 1st June, 2016.
Clause 68 of the Bill seeks to substitute section 153 of the
Income-tax Act with a new section relating to time limit for
completion of assessment, reassessment and recomputation.
It is proposed to substitute the existing section 153 to simplify
the said section by retaining only those provisions that are relevant
to the current provisions. The changes proposed in existing time
limit are as under :–
(a) the period, for completion of assessment under section
143 or section 144 be changed from existing two years to twentyone months from the end of the assessment year in which the
income was first assessable;
(b) the period for completion of assessment under section
147 be changed from existing one year to nine months from
the end of the financial year in which the notice under section
148 was served;
(c) the period for completion of fresh assessment in pursuance
of an order under section 254 or section 263 or section 264,
setting aside or cancelling an assessment be changed from
existing one year to nine months from the end of the financial
year in which the order under section 254 is received by the
Principal Chief Commissioner or Chief Commissioner or
Principal Commissioner or Commissioner, or the order under
section 263 or section 264 is passed by the Principal
Commissioner or Commissioner.
It is further proposed to provide that the period for giving effect
to an order, under section 250 or section 254 or section 260 or
section 262 or section 263 or section 264 or an order of the
Settlement Commission under sub-section (4) of section 245D,
where effect can be given wholly or partly otherwise than by making
a fresh assessment or reassessment shall be three months from
the end of the month in which order is received or passed, as the
case may be, by the Principal Chief Commissioner or Chief
Commissioner or Principal Commissioner or Commissioner. It is
also proposed that in a case where it is not possible for the
Assessing Officer to give effect to such order within the aforesaid
period, for reasons beyond his control, the Principal Commissioner
or Commissioner on receipt of such reasons in writing from the
Assessing Officer, if satisfied, may allow additional period of six
months to give effect to the order. However, where effect to an
order is pending as on 1st June, 2016, effect to the same shall be
given by the 31st March, 2017.
It is also proposed to provide that where the assessment,
reassessment or recomputation is made on the assessee or any
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person in consequence of or to give effect to any finding or direction
contained in an order under sections 250, 254, 260, 262, 263, or
section 264 or in an order of any court in a proceeding otherwise
than by way of appeal or reference under the Income-tax Act, then
such assessment, reassessment or recomputation shall be made
on or before the expiry of twelve months from the end of the month
in which such order is received by the Principal Commissioner or
Commissioner. However, for cases pending as on 1st June, 2016
action shall be taken by 31st March, 2017 or within twelve months
from the end of the month in which order is received, whichever is
later.
It is proposed to enhance the said threshold limit from thirty
thousand rupees to fifty thousand rupees.
It is also proposed that where an assessment is made on a
partner of the firm in consequence of an assessment made on the
firm under section 147, such assessment be made on or before
the expiry of twelve months from the end of the month in which the
assessment order in the case of the firm is passed. However, for
cases pending as on 1st June, 2016, assessment of partner can
be made by 31st March, 2017 or within twelve months from the
end of the month in which assessment order in case of firm is
passed.
It is proposed to enhance the said threshold limit from five
thousand rupees to ten thousand rupees.
These amendments will take effect from 1st day of June, 2016.
Clause 69 of the Bill seeks to substitute the section 153B of the
Income-tax Act by a new section 153B relating to time limit for
completion of assessment under section 153A and 153C.
It is proposed to substitute the existing section 153B to simplify
the said section by retaining those provisions which are relevant
to the current provisions of the Income-Tax Act. The changes
proposed in existing time limit of assessment are as under–
(i) The limitation for completion of assessment under section
153A, in respect of each assessment year falling within six
assessment years referred to in clause (b) of sub-section (1) of
section 153A and in respect of the assessment year relevant to
the previous year in which search is conducted under section
132 or requisition is made under section 132A be changed from
existing two years to twenty-one months from the end of the
financial year in which the last of the authorisations for search
under section 132 or for requisition under section 132A was
executed.
(ii) The limitation for completion of assessment in case of
other person referred to in section 153C shall be changed from
existing two years to twenty-one months from the end of the
financial year in which the last of the authorisations for search
under section 132 or for requisition under section 132A was
executed or be nine months (which as per the existing provision
is one year) from the end of the financial year in which the books
of account or documents or assets seized or requisitioned are
handed over under section 153C to the Assessing Officer having
jurisdiction over such other person, whichever is later.
It is also proposed to simplify section 153B by substituting certain
provisions which are no more relevant with the current provisions.
This amendment will take effect from 1st June, 2016.
Clause70 of the Bill seeks to amend section 192A of the Incometax Act relating to payment of accumulated balance due to an
employee.
Under the existing provisions contained in the aforesaid section,
no deduction of income-tax shall be made where the amount of
income relating to accumulated balance due to an employee
credited or paid or likely to be credited or paid during the financial
year to the account of, or to, the payee does not exceed thirty
thousand rupees.
This amendment will take effect from 1st June, 2016.
Clause 71 of the Bill seeks to amend section 194BB of the
Income-tax Act relating to winnings from horse race.
Under the existing provisions of the aforesaid section, any
person responsible for paying to any person any income by way of
winning from horse race in excess of five thousand rupees shall
deduct income-tax on such payment at the rates in force.
This amendment will take effect from 1st June, 2016.
Clause 72 of the Bill seeks to amend section 194C of the Incometax Act relating to payments to contractors.
The proviso to sub-section (5) of the aforesaid section provides
that the person responsible for paying the sums referred to in subsection (1) of the said section shall be liable to deduct income-tax,
where the aggregate of the amounts of the sums credited or paid
or likely to be credited or paid during the financial year exceeds
seventy-five thousand rupees.
It is proposed to enhance the said threshold limit from seventyfive thousand rupees to one lakh rupees for the aggregate
transactions during the financial year.
This amendment will take effect from 1st June, 2016.
Clause 73 of the Bill seeks to amend section 194D of the Incometax Act relating to insurance commission.
Under the existing provisions contained in the aforesaid section,
deduction of income tax at the rates in force shall be made in a
case where the amount of such income, or the aggregate of the
amount of the income, relating to remuneration or reward, whether
by way of commission or otherwise, for soliciting or procuring
insurance business, credited or paid during the financial year to
the account of, or to, the payee. However, the second proviso to
the said section provides that no deduction of income-tax under
that section shall be made if such amount does not exceed twenty
thousand rupees.
It is proposed to reduce the said threshold limit from twenty
thousand rupees to fifteen thousand rupees.
This amendment will take effect from 1st June, 2016.
Clause 74 of the Bill seeks to amend section 194DA of the
Income-tax Act relating to payment in respect of life insurance
policy.
Under the existing provisions contained in the aforesaid section,
any person responsible for paying to a resident any sum under a
life insurance policy, including the sum allocated by way of bonus
on such policy, which is not exempt under clause (10D) of section
10, shall, at the time of payment thereof, deduct income-tax at the
rate of two per cent., in case the aggregate amount of such
payments exceeds one hundred thousand rupees during the
financial year.
It is proposed to reduce the said rate of tax deduction from two
per cent. to one per cent.
This amendment will take effect from 1st June, 2016.
Clause 75 of the Bill seeks to amend section 194EE of the
Income-tax Act relating to payments in respect of deposits under
National Savings Scheme, etc.
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Under the existing provisions of the aforesaid section, any
payment in respect of deposits under National Savings Scheme,
etc., shall be liable for tax deduction at the rate of twenty per cent.
in case such amount exceeds two thousand five hundred rupees.
(23FC) of section 10 in the said sub-sections. The said amendment
is consequential in nature.
It is proposed to reduce the said rate of tax deduction from twenty
per cent. to ten per cent.
Clause 81 of the Bill seeks to amend section 194LBB of the
Income-tax Act relating to income in respect of units of investment
fund.
This amendment will take effect from 1st June, 2016.
Clause 76 of the Bill seeks to amend section 194G of the Incometax Act relating to commission, etc., on the sale of lottery tickets.
Under the existing provisions contained in the aforesaid section,
deduction of income-tax at the rate of ten per cent. shall be made
in a case where, the amount of income exceeding one thousand
rupees relating to stocking, distribution, purchase or sale of lottery
tickets, whether by way of commission or remuneration or prize is
credited to the account of the payee or at the time of payment of
such income in cash or by the issue of cheque or a draft or by any
other mode, whichever is earlier during the financial year.
It is proposed to reduce the said rate of tax deduction from ten
per cent. to five per cent. It is further proposed to increase the
said threshold limit from one thousand rupees to fifteen thousand
rupees.
These amendments will take effect from 1st June, 2016.
Clause 77 of the Bill seeks to amend section 194H of the Incometax Act relating to commission or brokerage.
Under the existing provisions contained in the aforesaid section,
deduction of income-tax at the rate of ten per cent. shall be made
in a case where the amount of income, of the aggregate of the
amounts of income relating to commission or brokerage, credited
or paid or likely to be credited or paid during the financial year, to
the account of, or to, the payee exceed five thousand rupees.
It is proposed to reduce the said rate of tax deduction from ten
per cent. to five per cent. It is further proposed to increase the
said threshold limit from five thousand rupees to fifteen thousand
rupees.
These amendments will take effect from 1st June, 2016.
This amendment will take effect from 1st June, 2016.
The aforesaid section provides that where any income other
than that proportion of income which is of the same nature as
income referred to in clause (23FBB) of section 10, is payable to a
unit holder in respect of units of an investment fund specified in
clause (a) of the Explanation 1 to section 115UB, the person
responsible for making the payment shall, at the time of credit of
such income to the account of payee or at the time of payment
thereof in cash or by issue of a cheque or draft or by any other
mode, whichever is earlier, deduct income-tax thereon at the rate
of ten per cent.
It is proposed to amend the said section so as to provide that
the income-tax on such payment shall be deducted––
(i) at the rate of ten per cent. in a case where the payee is a
resident;
(ii) at the rates in force in a case where the payee is a nonresident (not being a company) or a foreign company.
This amendment will take effect from 1st June, 2016.
Clause 82 of the Bill seeks to insert a new section 194LBC in
the Income-tax Act relating to income in respect of investment in
securitisation trust.
Sub-section (1) of the proposed new section seeks to provide
that where any income is payable to an investor, being a resident,
in respect of an investment in a securitisation trust specified in
clause (d) of the Explanation to section 115TCA, the person
responsible for making the payment shall, at the time of credit of
such income to the account of payee or at the time of payment
thereof in cash or by issue of a cheque or draft or by any other
mode, whichever is earlier, deduct income-tax thereon, at the rate
of––
Clause 78 of the Bill seeks to omit section 194K relating to
income in respect of units and section 194L relating to payment of
compensation on acquisition of capital asset, of the Income-tax
Act with effect from 1st June, 2016.
(i) twenty-five per cent., if the payee is an individual or a
Hindu undivided family;
Clause 79 of the Bill seeks to amend section 194LA of the
Income-tax Act relating to payment of compensation on acquisition
of certain immovable property.
Sub-section (2) of the proposed new section seeks to provide
that where any income is payable to an investor, being a nonresident (not being a company) or a foreign company, in respect
of an investment in a securitisation trust specified in clause (d) of
the Explanation to section 115TCA, the person responsible for
making the payment shall, at the time of credit of such income to
the account of payee or at the time of payment thereof in cash or
by issue of a cheque or draft or by any other mode, whichever is
earlier, deduct income-tax thereon, at the rates in force.
The existing provisions of the aforesaid section, inter alia, provide
that no deduction shall be made in case where the amount of
compensation or aggregate of such sum relating to acquisition of
immovable property (other than agricultural land), credited or paid
or likely to be credited or paid during the financial year to the account
of, or to, the payee does not exceed two hundred thousand rupees.
It is proposed to enhance the said threshold limit from two
hundred thousand rupees to two lakh and fifty thousand rupees.
This amendment will take effect from 1st June, 2016.
Clause 80 of the Bill seeks to amend section 194LBA of the
Income-tax Act relating to certain income from units of a business
trust.
It is proposed to amend sub-sections (1) and (2) of the said
section so as to give the reference of sub-clause (a) of clause
(ii) thirty per cent., if the payee is any other person.
It is also proposed to provide an Explanation under the proposed
new section to provide that the term “investor” shall have the
meaning assigned to it in clause (a) of the Explanation to section
115 TCA; and also that where any income referred to in the
proposed section is credited to any account, whether called
“suspense account” or by any other name, in the books of account
of the person liable to pay such income, such crediting shall be
deemed to be the credit of such income to the account of the payee,
and the provisions of this section shall apply accordingly.
These amendments will take effect from 1st June, 2016.
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Clause 83 of the Bill seeks to amend section 197 of the Incometax Act relating to certificate for deduction at lower rate.
source on any amount on which tax has been deducted by the
payer under Chapter XVII-B of the Act.
It is proposed to amend sub-section (1) of the said section to
provide that where, in the case of any income of any person or
sum payable to any person, the income-tax is required to be
deducted at the time of credit or, as the case may be, at the time of
payment under the provisions of section 194LBB and section
194LBC the Assessing Officer is satisfied that the total income of
the recipient justifies the deduction of income-tax at any lower rates
or no deduction of income-tax, as the case may be, the Assessing
Officer shall on an application made by the assessee in this behalf,
give to him such certificate as may be appropriate.
It is also proposed to insert a new sub-section after sub-section
(1D) so as to provide that nothing contained in sub-section (1D) in
relation to sale of any goods (other than bullion or jewellery) or
services shall apply to such classes of buyers who fulfils such
conditions, as may be prescribed.
This amendment will take effect from 1st June, 2016.
Clause 84 of the Bill seeks to amend section 197A of the Incometax Act relating to no deduction to be made in certain cases.
Sub-sections (1A) and (1C) of the aforesaid section provide that
no deduction of tax shall be made under the sections referred to in
the said sub-sections, if the individuals referred to in the said subsections furnish to the persons responsible for paying any income
of the nature referred to in specified sections, a declaration in writing
in duplicate in the prescribed form and verified in the prescribed
manner to the effect that the tax on his estimated total income of
the previous year in which such income is to be included in
computing his total income will be nil.
It is proposed to amend the said sub-sections to give reference
of section 194-I therein so as to provide that payments in the nature
of rent may be allowed to be received without deduction of tax.
This amendment will take effect from 1st June, 2016.
Clause 85 of the Bill seeks to amend section 206AA of the
Income-tax Act relating to requirement to furnish Permanent
Account Number.
The aforesaid section, inter alia, provides that any person who
is entitled to receive any sum or income or amount on which tax is
deductible at source under Chapter XVII shall furnish his Permanent
Account Number to the deductor, failing which tax shall be deducted
at the rate mentioned in the relevant provisions of the Act or at the
rate in force or at the rate of twenty per cent., whichever is higher.
It is proposed to substitute sub-section (7) of the said section
so as to provide that the provisions of the said section shall also
not apply to a non-resident, not being a company, or to a foreign
company, in respect of payment of interest on long-term bonds as
referred to in section 194LC and any other payment subject to
such conditions as may be prescribed.
This amendment will take effect from 1st June, 2016.
Clause 86 of the Bill seeks to amend section 206C of the Incometax Act relating to profits and gains from the business of trading in
alcoholic liquor, forest produce, scrap, etc.
The aforesaid section, inter alia, provides that the seller shall
collect tax at source at specified rate from the buyer at the time of
sale of certain goods specified under the said section.
It is proposed to amend the aforesaid section to provide that
the seller shall collect the tax at the rate of one per cent. on the
sale of motor vehicle of the value exceeding ten lakh rupees in
cash or by the issue of a cheque or draft or by any other mode or
for sale of any other goods (other than bullion and jewellery) or
providing any service in cash exceeding two hundred thousand
rupees.
It is further proposed to insert a proviso under sub-section (1D)
of the said section so as to provide that no tax shall be collected at
These amendments will take effect from 1st June, 2016.
Clause 87 of the Bill seeks to amend section 211 of the Incometax Act relating to instalments of advance tax and due dates.
As per the existing provisions of sub-section (1) of the aforesaid
section, the advance tax payment schedule for a company is fifteen
per cent., forty-five per cent., seventy-five per cent. and hundred
per cent. of tax payable on the current income by 15th June, 15th
September, 15th December and 15th March, respectively. For
assessees (other than companies), the advance tax payment
schedule is thirty per cent., sixty per cent. and hundred per cent.
of tax payable on current income by 15th September, 15th December
and 15th March, respectively.
It is proposed to amend the advance tax payment schedule for
assessees (other than companies) and bring it in consonance with
the existing advance tax payment schedule applicable for a
company.
It is further proposed that an eligible assessee in respect of
eligible business referred to in section 44AD opting for computation
of profits or gains of business on presumptive basis, shall be
required to pay advance tax of the whole amount in one instalment
on or before the 15th March of the financial year.
These amendments will take effect from 1st June, 2016.
Clause 88 of the Bill seeks to amend section 220 of the Incometax Act relating to when tax payable and when assessee is deemed
in default.
The aforesaid section provides for an assessee to be deemed
to be in default and its consequences in case of failure on the part
of the assessee to pay the amount of tax due. Sub-section (2) of
the said section provides for levy of interest at the rate of one per
cent. for every month or part of month for the period during which
the default continues. Sub-section (2A) of the said section, inter
alia, empowers the Principal Chief Commissioner, Chief
Commissioner, Principal Commissioner or Commissioner to reduce
or waive the amount of interest paid or payable under sub-section
(2) of the said section.
It is proposed to amend sub-section (2A) of the said section so
as to provide that an order accepting or rejecting the application of
an assessee shall be passed by the concerned Principal Chief
Commissioner, Chief Commissioner, Principal Commissioner or
Commissioner within a period of twelve months from the end of
the month in which such application is received. It is further
proposed to provide that no order shall be passed without giving
the assessee an opportunity of being heard. However, in respect
of the applications pending as on 1st day of June, 2016, the order
shall be passed on or before 31st May, 2017.
These amendments will take effect from 1st June, 2016.
Clause 89 seeks to amend section 234C of the Income-tax Act
relating to interest for deferment of advance tax.
It is proposed to make consequential amendments in sub-section
(1) of section 234C, in view of the amendments made in section
211, so as to levy interest on deferment of advance tax, in the
same manner as applicable to the company, to an assessee (other
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than company) also. Further, with regard to an eligible assessee
referred to in section 44AD, it is proposed to provide that interest
shall be levied, if the advance tax paid on or before the 15th day of
March is less than the tax due on the returned income.
It is also proposed to amend the said section so as to provide
that nothing contained in the said sub-section (1) shall apply to
any shortfall in the payment of the tax due on the returned income
where such shortfall is on account of under-estimate or failure to
estimate income under the head “Profits and gains of business or
profession” in cases where the income accrues or arises under
the said head for the first time.
Clause 92 of the Bill seeks to amend section 252 of the Incometax Act relating to Appellate Tribunal.
Clause (b) of sub-section (3), sub-section (4A) and sub-section
(5) of the aforesaid section provide for the appointment and powers
of Senior Vice-President of the Appellate Tribunal.
It is proposed to omit the reference of “Senior Vice-President”
in the aforesaid provisions.
These amendments will take effect from 1st June, 2016.
Clause 93 of the Bill seeks to amend section 253 of the Incometax Act relating to appeals to the Appellate Tribunal.
These amendments will take effect from 1st June, 2016.
Clause 90 of the Bill seeks to amend section 244A of the Incometax Act relating to interest on refunds.
Sub-clause (A) of the said clause seeks to amend clause (a) of
sub-section (1) of the said section.
The aforesaid section provides that an assessee is entitled to
interest on refund arising out of excess payment of advance tax,
tax deducted or collected at source, etc.
Further, it is provided that the period for which the interest is
paid on excess payment of tax begins from the 1st April of the
assessment year and ends on the date on which refund is granted.
It is proposed to amend the said section to provide that in cases
where the return is filed after the due date, the period for grant of
interest on refund shall begin from the date of filing of return.
It is further proposed to provide that an assessee shall be eligible
to interest on refund of self-assessment tax for the period beginning
from the date of payment of tax or filing of return, whichever is
later, to the date on which the refund is granted.
Sub-clause (B) of the said clause seeks to insert a new subsection (1A) so as to provide that that where a refund arising out of
appeal effect is delayed beyond the time prescribed under subsection (5) of section 153, the assessee shall be entitled to receive,
in addition to the interest payable under sub-section (1) of section
244A, an additional interest on such refund amount calculated at
the rate of three per cent. per annum, for the period beginning
from the date following the date of expiry of the time allowed under
sub-section (5) of section 153 to the date on which the refund is
granted.
Sub-clause (C) of said clause seeks to amend sub-section (2)
of the said section so as to give the reference of sub-section (1A)
in the said sub-section which is consequential in nature.
These amendments will take effect from 1st June, 2016.
Clause 91 of the Bill seeks to amend section 249 of the Incometax Act relating to form of appeal and limitation.
Clause (b) of sub-section (2) of the aforesaid section provides
that an appeal before the Commissioner (Appeals) is to be made
within thirty days of the receipt of the notice of demand relating to
an assessment order.
It is proposed to provide that in a case where the assessee
makes an application under section 270AA of the Income-tax Act
seeking immunity from penalty and prosecution, then, the period
beginning from the date on which such application is made to the
date on which the order rejecting the application is served on the
assessee shall be excluded for calculation of the aforesaid thirty
days period.
This amendment will take effect from the 1st April, 2017.
Sub-clause (A) of the said clause seeks to amend clauses (a)
and (c) of sub-section (1) of the said section.
Clause (a) and clause (c) of sub-section (1) of the aforesaid
section, inter alia, provides for an appeal to the Appellate Tribunal,
against an order passed under section 271of the Income-tax Act.
It is proposed to amend the said clauses of sub-section (1) of
section 253 so as to provide that an assessee aggrieved by an
order passed by the Commissioner (Appeals) or the Principal
Commissioner or Commissioner under section 270A, may also
appeal to the Appellate Tribunal against such order.
The proposed amendments are consequential to the insertion
of a new section 270A in the Income-tax Act which provides for
levy of penalty for under-reporting and misreporting of income.
These amendments will take effect from 1st April, 2017 and
will, accordingly, apply in relation to the assessment year 20172018 and subsequent years.
Sub-clause (B) of the said clause seeks to omit sub-sections
(2A) and (3A) and to substitute sub-section (4) of the said section.
Sub-section (2A) of the aforesaid section provides that the
Principal Commissioner or Commissioner may, if he objects to any
direction issued by the Dispute Resolution Panel under sub-section
(5) of section 144C in respect of any objection filed on or after the
1st day of July, 2012, by the assessee under sub-section (2) of
section 144C in pursuance of which the Assessing Officer has
passed an order completing the assessment or reassessment,
direct the Assessing Officer to appeal to the Appellate Tribunal
against the order.
Further, sub-section (3A) of the said section provides that every
appeal under sub-section (2A) shall be filed within sixty days of
the date on which the order sought to be appealed against is passed
by the Assessing Officer in pursuance of the directions of the
Dispute Resolution Panel under sub-section (5) of section 144C.
It is proposed to omit the said sub-sections (2A) and (3A) to do
away with the filing of such appeal by the Assessing Officer.
It is also proposed to consequently amend sub-section (4) of
the aforesaid section so as to exclude therefrom the reference
relating to direction of the Dispute Resolution Panel, sub-section
(2A) and the order of the Assessing Officer (in pursuance of the
directions of the Dispute Resolution Panel).
These amendments will take effect from 1st June, 2016.
Sub-clause (C) of the said section seeks to substitute the proviso
to sub-section (6) of the said section so as to provide that no fee
shall be payable in the case of an appeal under sub-section (2A)
of the said section also, as it stood before the commencement of
the Finance Act, 2016.
This amendment will take effect retrospectively from 1st July,
2012.
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Clause 94 of the Bill seeks to amend section 254 of the Incometax Act relating to orders of Appellate Tribunal.
Sub-section (2) of the said section provides that the Appellate
Tribunal may rectify any mistake apparent from the record in its
order at any time within four years from the date of the order.
It is proposed to amend the said sub-section (2) so as to provide
that the Appellate Tribunal may rectify any mistake apparent from
the record in its order at any time within six months from the end of
the month in which the order was passed.
It is further proposed to amend sub-section (2A) of the aforesaid
section, so as to omit the reference of sub-section (2A) of section
253. The proposed amendment is consequential in nature in view
of omission of sub-section (2A) of section 253.
These amendments will take effect from 1st June, 2016.
Clause 95 of the Bill seeks to amend section 255 of the Incometax Act, relating to the procedure of Appellate Tribunal.
Sub-section (3) of the aforesaid section, inter alia, provides that
a single member bench may dispose of any case which pertains
to an assessee whose total income as computed by the Assessing
Officer does not exceed fifteen lakh rupees.
It is proposed to amend the said sub-section (3) so as to provide
that a single member bench may dispose of a case where the total
income as computed by the Assessing Officer does not exceed
fifty lakh rupees.
Sub-section (3) of the proposed section seeks to provide that
the amount of under-reported income shall be, in a case where
income has been assessed for the first time and the return has
been furnished, the difference between the amount of income
assessed and the income determined under clause (a) of subsection (1) of section 143. In a case where no returns has been
furnished and income is assessed for the first time, the amount of
under-reported income shall be the income assessed, in the case
of a company, firm or local authority, and in any other case the
difference between the amount of income assessed and the
maximum amount not chargeable to tax.
It is further proposed that in a case where income is not assessed
for the first time, the under-reported income is proposed to be the
difference between the amount of income assessed, reassessed
or recomputed in a preceding order.
Appropriate provisions for calculating the amount of underreported income in a case of applicability of provisions of section
115JB or section 115JC or in case of loss have also been provided.
Sub-section (4) of the proposed new section seeks to provide
for calculation of under reported income in case where the source
of any receipt, deposit or investment linked to earlier year is
proposed to be provided based on the existing Explanation 2 to
sub-section (1) of section 271(1).
Sub-section (6) of the proposed new section seeks to provide
that under - reported income under this section shall not include
certain cases mentioned therein.
This amendment will take effect from 1st day of June, 2016.
Clause 96 of the Bill seeks to insert section 270A in the Incometax Act relating to penalty for under-reporting and misreporting of
income.
Under the existing provisions, penalty on account of
concealment of particulars of income or furnishing inaccurate
particulars of income is leviable under clause (c) of sub-section
(1) of section 271 of the Income-tax Act. In order to rationalize the
penalty provisions, it has been provided that section 271 shall not
apply to and in relation to any assessment for the assessment
year commencing on or after the 1st day of April, 2017.
It is proposed to insert a new section 270A for under-reporting
and misreporting of income.
Sub-section (1) of the proposed new section seeks to provide
that the Assessing Officer, Commissioner (Appeals) or the Principal
Commissioner or Commissioner may have the power to levy
penalty if a person has under reported his income.
Sub-section (2) of the proposed new section seeks to provide
that a person shall be considered to have under reported his income
if,––
(i) the income assessed is greater than the maximum
amount not chargeable to tax, where no return of income is
filed;
(ii) the assessed income is greater than the income
determined upon processing under clause (a) of sub-section
(1) of section 143, where return is filed;
(iii) the income assessed is greater than the income assessed
or reassessed immediately before such reassessment;
(iv) the income assessed or reassessed has the effect of
reducing the loss or converting such loss into income,
Appropriate provisions to cover minimum alternate tax and
alternate minimum tax cases on the above lines are proposed to
be provided.
Sub-section (7) of the proposed new section seeks to provide
that the rate of penalty shall be fifty per cent. of the tax payable on
under - reported income.
Sub-section (8) of the proposed new section seeks to provide
that the cases of under - reported income falling under misreporting
of income shall be liable for penalty at the rate of two hundred per
cent. of the tax payable on such misreported income.
Sub-section (9) of the proposed new section seeks to specify
the cases of misreporting of income referred to in sub-section (8).
Sub-section (10) of the proposed new section seeks to provide
that the tax payable on under-reported income shall be calculated
as if such under-reported income was the total income in case of a
company, firm or local authority, and at the rate of thirty per cent.
of under-reported income in any other case based on the tax rate
applicable in case of company, firm or local authority, and in other
cases.
Sub-section (11) of the proposed new section seeks to provide
that no addition or disallowance of an amount shall form the basis
for imposition of penalty, if such addition or disallowance has formed
the basis of imposition of penalty in the case of the person for the
same or any other assessment year.
Sub-section (12) of the proposed new section seeks to provide
that the penalty under the said section shall be imposed by an
order in writing.
These amendments will take effect from the 1st day of April,
2017 and will, accordingly, apply in relation to the assessment
year 2017-2018 and subsequent years.
Clause 97 of the Bill seeks to insert a new section 270AA in the
Income-tax Act relating to immunity from imposition of penalty
etc.
It is proposed to provide that an assessee may make an
application to the Assessing Officer for grant of immunity from
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imposition of penalty under section 270A and initiation of
proceedings under section 276C, provided he pays the tax and
interest payable as per the order of assessment or reassessment
within the period specified in such notice of demand and does not
prefer an appeal against such assessment order. The assessee
can make such application within one month from the end of the
month in which the order of assessment or reassessment is
received in the form and manner, as may be prescribed.
It is proposed that the Assessing Officer shall, on fulfilment of
the above conditions and after the expiry of period of filing appeal
as specified in sub-section (2) of section 249, grant immunity from
imposition of penalty and initiation of proceedings under section
276C , where the penalty proceedings under section 270A has
not been initiated on account of the circumstances of misreporting
as laid in sub-section (9) of section 270A.
It is also proposed that the Assessing Officer is required to pass
an order accepting or rejecting such application, as the case may
be, within a period of one month from the end of the month in
which such application is received. However, no order rejecting
the application shall be passed by the Assessing Officer unless
the assessee has been given an opportunity of being heard and
the said order shall be final.
This amendment will take effect from 1st April, 2017 and will
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
Clause 98 of the Bill seeks to amend section 271 of the Incometax Act relating to failure to furnish returns, comply with notices,
concealment of income, etc.
The provisions of the said section provides for a penalty on
account of failure to comply with a notice issued under sub-section
(1) of section 142 or sub-section (2) of section 143 or failure to
comply with a direction issued under sub-section (2A) of section
142 or for concealment of particulars of income or furnishing
inaccurate particulars of income, is leviable.
It is proposed to provide that provisions of section 271 shall not
apply to and in relation to any assessment for the assessment
year commencing on or after the 1st day of April, 2017.
The aforesaid section provides that the Assessing Officer or
Commissioner (Appeals) may direct that a person who has failed
to keep and maintain any information and document referred to in
section 92D, shall pay by way of penalty a sum equal to two per
cent. of the value of each international transaction or specified
domestic transaction entered into by such person.
It is proposed to amend sub-section (1) of the said section so
as to give the reference of section 270A in the said section which
is consequential in nature.
It is further proposed to amend the said section so as to provide
that if any person being constituent entity of an international group
referred to in the proposed new section 286 fails to furnish the
information and document in accordance with provisions of section
92D, then, the prescribed authority referred to in the said section
may direct that such person shall be liable to pay a penalty of five
hundred thousand rupees.
These amendments will take effect from 1st April, 2017 and
will, accordingly, apply in relation to the assessment year 20172018 and subsequent years.
Clause 101 of the Bill seeks to amend section 271AAB of the
Income-tax Act relating to penalty where search has been initiated.
Clause (c) of sub-section (1) of the aforesaid section provides
that a penalty of a sum which shall not be less than thirty per cent.
but which shall not exceed ninety per cent. of the undisclosed
income of the specified previous year shall be levied in case where
search has been initiated under section 132 on or after the 1st day
of July, 2012, and such case is not covered under the provisions
of clauses (a) and (b) of sub-section (1) of section 271AAB.
It is proposed to amend the said clause (c) so as to provide for
levy of penalty on such undisclosed income at a flat rate of sixty
per cent.
Sub-section (2) of the aforesaid section provides for non-levy
of penalty under clause (c) of sub-section (1) of section 271, in
respect of undisclosed income referred to in sub-section (1) of
section 271AAB.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
It is proposed to amend the said sub-section (2) so as to provide
that no penalty shall be levied under section 270A also in respect
of the undisclosed income referred to in sub-section (1) of section
271AAB.
Clause 99 of the Bill seeks to amend section 271A of the Incometax Act relating to failure to keep, maintain or retain books of
account, documents, etc.
These amendments will take effect from 1st April, 2017 and
will, accordingly, apply in relation to the assessment year 20172018 and subsequent years.
The aforesaid section provides for penalty in case of failure to
keep and maintain any such books of account and other documents
as required under section 44AA or the rules made thereunder, or
to retain books of account or documents for the period specified.
Clause 102 of the Bill seeks to insert a new section 271GB in
the Income-tax Act relating to penalty for failure to furnish report or
for furnishing inaccurate report under section 286.
It is proposed to amend the said section so as to provide that
section 271A shall be applicable without prejudice to the provisions
of section 270A.
The proposed amendment is consequential to the insertion of a
new section 270A in the Income-tax Act which provides for levy of
penalty for under-reporting and misreporting of income.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
Clause 100 of the Bill seeks to amend section 271AA of the
Income-tax Act relating to penalty for failure to keep and maintain
information and document, etc., in respect of certain transactions.
The proposed new section provides that if any reporting entity
referred to in section 286 fails to furnish a report referred to in subsection (2) of the said section then, the prescribed authority may
direct such entity to pay by way of penalty a sum of five thousand
rupees for every day for which the failure continues if the period of
failure does not exceed one month and fifteen thousand rupees
for every day for which failure continues beyond the period of one
month.
It is further provided that where any reporting entity fails to
produce the information and documents within the period allowed
under sub-section (6) of section 286, the prescribed authority may
direct that such entity shall pay, by way of penalty, a sum of five
thousand rupees for every day during which the failure continues,
beginning from the day immediately following the day on which
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the period for furnishing the information and document expires. It
is also provided that if the failures continue after any order directing
the person to pay by way of penalty any sum has been served on
the entity, then the prescribed authority may direct that such entity
shall pay, by way of penalty, a sum of fifty thousand rupees for
every day for which such failure continues begining from the date
of service of such order.
It is also provided that in case a reporting entity provides
inaccurate information in the report furnished in accordance with
sub-section (2) of the said section 286 and where the entity knows
of the inaccuracy at the time of furnishing the report but does not
inform the prescribed authority or the entity discovers the
inaccuracy after the report is furnished and fails to inform the
prescribed authority and furnish correct report within a period of
fifteen days of such discovery or the entity furnishes inaccurate
information or document in response to notice under sub-section
(6) of section 286 then, the prescribed authority may direct that
such person shall pay, by way of penalty, a sum of five lakh rupees.
These amendments will take effect from 1st April, 2017 and
will, accordingly, apply in relation to the assessment year 20172018 and subsequent years.
under sub-section (1) of section 273A.
It is proposed to make a reference of section 270A in clause (ii)
and in the Explanation to sub-section (1) and in clause (b) of subsection (2) of section 273A, owing to insertion of a new section
270A which provides for levy of penalty for under-reporting or
misreporting of income and ceasing of operation of section 271,
for the assessment year commencing on or after 1st April, 2017.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
Sub-clause (ii) of the said clause seeks to insert a new subsection (4A) in the said section so as to provide that an order
accepting or rejecting application of an assessee shall be passed
by the concerned Principal Commissioner or Commissioner within
a period of twelve months from the end of the month in which such
application is received. It is further proposed to provide that no
order shall be passed without giving the assessee an opportunity
of being heard. However, in respect of applications pending as on
1st day of June, 2016, the order shall be passed on or before 31st
May, 2017.
This amendment will take effect from 1st June, 2016.
Clause 103 of the Bill seeks to amend section 272A of the
Income-tax Act relating to penalty for failure to answer questions,
sign statements, furnish information, returns or statements, allow
inspections, etc.
Clause 105 of the Bill seeks to amend section 273AA of the
Income-tax Act relating to power of Principal Commissioner or
Commissioner to grant immunity from penalty.
Sub-section (1) of the said section provides for levy of penalty
of ten thousand rupees for each failure or default to answer the
questions raised by an income-tax authority under the Income-tax
Act, refusal to sign any statement legally required during the
proceedings under the Income-tax Act or failure to attend to give
evidence or produce books or documents as required under subsection (1) of section 131 of the Income-tax Act.
The aforesaid section, inter alia, provide that the Principal
Commissioner or the Commissioner may grant immunity from
penalty, if penalty proceedings have been initiated in case of a
person who has made application for settlement before the
settlement commission and the proceedings for settlement had
abated under the circumstances contained in section 245HA of
the Act.
It is proposed to insert a new clause (d) in the said sub-section
so as to include levy of penalty of ten thousand rupees for each
default or failure to comply with a notice issued under sub-section
(1) of section 142 or sub-section (2) of section 143 or failure to
comply with a direction issued under sub-section (2A) of section
142.
It is proposed to amend the said section to provide that an order
accepting or rejecting the application of an assessee shall be
passed by the concerned Principal Commissioner or Commissioner
within a period of twelve months from the end of the month in
which such application is received.
It is also proposed to amend sub-section (3) of the aforesaid
section to provide that penalty under clause (d) of sub-section (1)
shall be imposed by the Income-tax authority issuing such notice
or direction.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
Clause104 of the Bill seeks to amend section 273A of the
Income-tax Act relating to power to reduce or waive penalty, etc.,
in certain cases.
Sub-clause (i) of the said clause seeks to amend sub-section
(1) of the said section.
Clause (ii) of sub-section (1) of section 273A provides for
reduction or waiver of penalty imposed or imposable under clause
(iii) of sub-section (1) of section 271. Explanation to the said subsection clarifies that if the nature of income assessed over the
returned income is such that it does not attract provisions of clause
(c) of sub-section (1) of section 271, then, the person shall be
deemed to have made full and true disclosure for the purposes of
sub-section (1) of the said section 271.
Further, clause (b) of sub-section (2) of section 273A provides
for condition, wherein penalty shall not be waived and reduced
It is further proposed to provide that no order shall be passed
without giving the assessee an opportunity of being heard.
However, in respect of applications pending as on 1st day of June,
2016, the order shall be passed on or before 31st May, 2017.
This amendment will take effect from 1st June, 2016.
Clause 106 of the Bill seeks to amend section 273B of the
Income-tax Act relating to penalty not to be imposed in certain
cases.
The aforesaid section provides that the penalties referred to in
different sections enumerated in the said section 273B shall not
be imposable on the person or the assessee for any failure referred
to in the said sections, if he proves that there was reasonable
cause for the said failure.
It is proposed to amend the said section so as to include the
reference of the proposed new section 271GB.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
Clause 107 of the Bill seeks to amend section 279 of the Incometax Act relating to prosecution to be at instance of Principal Chief
Commissioner or Chief Commissioner or Principal Commissioner
or Commissioner.
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Sub-section (1A) of the aforesaid section provides that
prosecution proceeding shall not be proceeded against a person
for offences under section 276C or section 277 in respect of whom
penalty under clause (iii) of sub-section (1) of section 271 has
been reduced or waived under section 273A.
It is proposed to amend the said sub-section so as to provide
that the prosecution proceeding shall not be proceeded against a
person for offences under section 276C or section 277 in respect
of whom penalty under section 270A has also been reduced or
waived under section 273A.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
Clause 108 of the Bill seeks to amend section 281B of the
Income-tax Act relating to provisional attachment to protect revenue
in certain cases.
The aforesaid section provides that the Assessing Officer has
the power to provisionally attach any property of the assessee
during the pendency of assessment or reassessment proceedings,
for a period of six months, with the prior approval of the incometax authorities specified therein, if he is of the opinion that it is
necessary to do so for the purpose of protecting the interests of
the revenue. Such attachment of property is extendable by the
said income-tax authorities to a maximum period of two years or
sixty days after the date of assessment order, whichever is later.
Explanation to sub-section (1) of section 281B provides that
proceedings under sub-section (5) of section 132 shall be deemed
to be proceedings for the assessment of any income or for the
assessment or reassessment of any income which has escaped
assessment. Sub-section (5) of section 132 stands omitted from
1st June, 2002. Therefore, it is proposed to omit the said
Explanation.
It is further proposed to insert new sub-sections (3) to (9) in the
said section to provide that the Assessing Officer shall revoke
attachment of property made under sub-section (1) in a case where
the assessee furnishes a bank guarantee from a scheduled bank,
for an amount not less than the fair market value of such
provisionally attached property or for an amount lower than the
fair market value of the property which is sufficient to protect the
interests of the revenue.
It is also proposed that the Assessing Officer may, make a
reference to the Valuation Officer, who may be required to submit
the report of the estimate of the property to the Assessing Officer
within a period of thirty days from the date of receipt of such
reference.
It is also proposed to provide that an order revoking the
attachment be made by the Assessing Officer within fifteen days
of receipt of such guarantee, and in a case where a reference is
made to the Valuation Officer, within forty-five days from the date
of receipt of such guarantee.
It is also proposed that where a notice of demand specifying a
sum payable is served upon the assessee and the assessee fails
to pay such sum within the time specified in the notice, the
Assessing Officer may invoke the bank guarantee, wholly or partly,
to recover the said amount.
If the assessee fails to renew the bank guarantee furnished
under sub-section (3) or fails to furnish a fresh guarantee from a
scheduled bank for an equal amount, fifteen days before the expiry
of such guarantee, the Assessing Officer shall, if it is necessary to
do so to protect the interest of the revenue, invoke the bank
guarantee. The amount realised by invoking the bank guarantee
shall be adjusted against the existing demand which is payable
and the balance amount, if any, be deposited in the Personal
Deposit Account of the Principal Commissioner or Commissioner
in the branch of Reserve Bank of India or the State Bank of India
or of its subsidiaries or any bank as may be appointed by the
Reserve Bank of India as its agent under the provisions of subsection (1) of section 45 of the Reserve Bank of India Act, 1934 at
the place where the office of the Principal Commissioner or
Commissioner is situated.
In a case where the Assessing Officer is satisfied that the bank
guarantee is not required any more to protect the interests of the
revenue, he shall release that guarantee forthwith.
These amendments will take effect from 1st day of June, 2016.
Clause 109 of the Bill seeks to amend section 282A of the
Income-tax Act relating to authentication of notices and other
documents.
Sub-section (1) of the aforesaid section provides that where a
notice or other document is required to be issued by any incometax authority under the Act, such notice or document should be
signed by that authority in manuscript.
It is proposed to amend the said sub-section (1) so as to provide
that notices and documents required to be issued by income-tax
authority under the Act shall be issued by such authority either in
paper form or in electronic form in accordance with such procedure
as may be prescribed.
This amendment will take effect from 1st June, 2016.
Clause 110 of the Bill seeks to insert a new section 286 in the
Income-tax Act relating to furnishing of report in respect of
international group.
The proposed section provides for furnishing of a report in
respect of an international group, if the parent entity of the group
is resident in India.
Sub-section (1) of the proposed new section provides that
constituent entity in India of an international group, not having a
parent entity resident in India shall notify the prescribed authority
regarding the parent entity of the group to which it belongs or an
alternate reporting entity which shall furnish the report on behalf of
the group in the prescribed manner.
Sub-section (2) of the proposed new section provides that the
parent entity of an international group, which is resident in India,
shall furnish a report in respect of the international group on or
before due date specified under sub-section (1) of section 139 for
furnishing of return of income of the relevant accounting year.
Sub-section (3) of the proposed new section provides for the
details to be contained in the report to be furnished. It, inter alia,
provides that the report shall contain aggregate information in
respect of amount of revenues, profit and loss, taxes accrued and
paid, number of employees, details of constituent entities and the
country or territory in which such entities are resident or located.
Sub-section (4) of the proposed new section provides for
furnishing report by entities resident in India and belonging to an
international group not headed by Indian resident entity.
Sub-section (5) of the proposed new section provides for
circumstances under which the constituent entities referred to in
sub-section (4) shall not be required to furnish the report.
Sub-section (6) of the proposed new section provides that the
prescribed authority may, by issuance of notice for the purpose of
verifying the accuracy of the report furnished by any entity, require
submission of information and document as specified in the notice.
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Sub-section (7) of the proposed new section provides that the
reporting requirement under this section shall not apply to an
accounting year, if the total consolidated group revenue for the
accounting year preceding it, does not exceed the prescribed
threshold.
Sub-section (8) of the proposed new section provides for
application of the section in accordance with such guidelines and
subject to such conditions as may be prescribed.
Sub-section (9) of the proposed new section, inter alia, defines
various terms for the purposes of the new section.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
Clause 111 of the Bill seeks to amend section 288 of the Incometax Act relating to appearance by authorised representative.
Clause (b) of sub-section (4) of the aforesaid section bars an
authorised representative to represent an assessee before any
income-tax authority or the Appellate Tribunal if he has been
convicted of an offence connected with any income-tax proceedings
or if a penalty has been imposed on him under the Income-tax Act
other than a penalty imposed under clause (ii) of sub-section (1)
of section 271.
It is proposed to amend clause (b) of sub-section (4) of section
288 so as to provide that a person on whom a penalty has been
imposed under clause (d) of sub-section (1) of section 272A of the
Income-tax Act shall also not be barred to represent an assessee
before any income-tax authority or the Appellate Tribunal.
The proposed amendment is consequential to the insertion of a
new clause (d) in sub-section (1) of section 272A in the Incometax Act relating to penalty for failure to comply with the notices and
directions specified therein.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to the assessment year 2017-2018
and subsequent years.
Clause 112 of the Bill seeks to amend Part A of Fourth Schedule
to the Income-tax Act relating to recognised provident fund.
Rule 6 of the aforesaid Schedule, inter alia, provides that
contributions made by employer to the credit of an employee
participating in a recognised provident fund, which are in excess
of twelve per cent. of the salary of the employee, are liable to tax
in the hands of the employee.
It is proposed to amend the said rule so as to provide an upper
ceiling of one lakh and fifty thousand rupees to such contribution
by the employer.
This amendment will take effect from 1st April, 2017 and will,
accordingly, apply in relation to assessment year 2017-2018 and
subsequent years.
Customs
Clause 113 of the Bill seeks to amend section 2 of the Customs
Act so as to––
(i) substitute clause (43) thereof to redefine the expression
“warehouse”;
(ii) omit clause (45).
Clause 114 of the Bill seeks to amend the Chapter heading of
Chapter-III of the Customs Act.
Clause 115 of the Bill seeks to omit section 9 of the Customs
Act.
Clause 116 of the Bill seeks to amend section 25 of the Customs
Act, so as to substitute sub-section (4) thereof to provide that every
notification issued under sub-section (1) or sub-section (2A) shall,
unless otherwise provided, come into force on the date of its issue
by the Central Government for publication in the Official Gazette.
It is further proposed to omit sub-section (5) thereof.
Clause 117 of the Bill seeks to amend section 28 of the Customs
Act so as to provide for recovery of duty in situations where the
duty has been levied but not paid or has been short-paid also.
This clause further seeks to extend the limitation period for
investigation of cases not involving any collusion, wilful misstatement or suppression of facts from one year to two years.
Clause 118 of the Bill seeks to insert a proviso in sub-section
(1) of section 47 of the Customs Act so as to empower the Central
Government to permit certain class of importers specified by
notification to make deferred payment of duty or other charges in
the manner provided by the rules.
It also seeks to amend sub-section (2) of the said section to
empower the Central Government to fix the rate of interest not
below ten per cent. and not exceeding thirty-six per cent. per annum
where importer fails to pay import duty either in full or in part within
two days from the date specified therein.
Clause 119 of the Bill seeks to renumber section 51 of the
Customs Act as sub-section (1) thereof and to insert a proviso in
sub-section (1) so as to empower the Board to permit certain class
of exporters specified by notification to make deferred payment of
duty or any charges in the manner provided by rules.
It also seeks to insert a new section therein to empower the
Central Government to fix the rate of interest not below five per
cent. and not exceeding thirty-six per cent. per annum where the
exporter fails to pay export duty either in full or in part within the
date specified by rules.
Clause 120 of the Bill seeks to substitute section 53 of the
Customs Act so as to enable the proper officer to allow transit of
certain goods and conveyance without payment of duty, subject
to the conditions specified by the Board by regulations.
Clause 121 of the Bill seeks to substitute a new section for
section 57 of the Customs Act so as to vest with the Principal
Commissioner of Customs or Commissioner of Customs the power
to license a public warehouse.
Clause 122 of the Bill seeks to substitute new sections 58, 58A
and 58B for section 58 of the Customs Act.
The proposed section 58 seeks to vest with the Principal
Commissioner of Customs or Commissioner of Customs, the power
to license a private warehouse.
The proposed section 58A seeks to vest with the Principal
Commissioner of Customs or Commissioner of Customs the power
to license a special warehouse wherein dutiable goods may be
deposited and such warehouse shall be caused to be locked by
the proper officer and no person shall enter the warehouse or
remove any goods therefrom without the permission of proper
officer.
The proposed section 58B seeks to vest with the Principal
Commissioner of Customs or Commissioner of Customs the power
to cancel a licence granted under section 57 or section 58 or section
58A, if the licensee has contravened any provision of the Act or
the rules or regulations made thereunder or breached any of the
conditions of the licence.
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Clause 123 of the Bill seeks to substitute a new section for
section 59 of the Customs Act, so as to provide that the importer
of goods shall execute a bond and also furnish security in the
manner specified therein.
Clause 124 of the Bill seeks to substitute new section for section
60 of the Customs Act.
The proposed sub-section (1) of section 60 seeks to provide for
permission for removal of goods from a customs station for the
purpose of deposit in a warehouse.
The proposed sub-section (2) of said section seeks to provide
for the deposit of goods in a warehouse pursuant to an order made
under sub-section (1).
Clause 125 of the Bill seeks to substitute a new section for
section 61 of the Customs Act so as to specify the period for which
goods may remain warehoused.
Clause 126 of the Bill seeks to omit sections 62 and 63 of the
Customs Act.
Clause 127 of the Bill seeks to substitute a new section for
section 64 of the Customs Act so as to make provisions for owner’s
right to deal with warehoused goods.
Clause 128 of the Bill seeks to amend section 65 of the Customs
Act so as to substitute certain words therein.
Clause 129 of the Bill seeks to amend section 68 of the Customs
Act so as to –
(i) substitute certain words therein;
(ii) substitute a new clause for clause (b) to provide that any
warehoused goods may be cleared from the warehouse for
home consumption if the import duty, interest, fine and penalties
payable in respect of such goods have been paid;
(iii) omit the words “rent, interest, other charges and” occurring
in the first proviso to that section.
Clause 130 of the Bill seeks to amend section 69 of the Customs
Act so as to,––
(i) substitute the word “exportation” with the word “export”;
(ii) substitute a new clause for clause (b) of sub-section (1)
to provide that warehoused goods may be exported to a place
outside India without payment of import duty if the export duty,
fine and penalties payable in respect of such goods have been
paid.
Clause 131 of the Bill seeks to amend section 71 of the Customs
Act so as to substitute the word “re-exportation” with the word
“export”.
Clause 132 of the Bill seeks to amend sub-section (1) of section
72 of the Customs Act so as to –
(i) omit clause (c);
(ii) substitute the word “exportation” with the word “export”;
(iii) substitute certain words in the long line.
Clause 134 of the Bill seeks to insert a new section 73A of the
Customs Act so as to provide for the custody and removal of
warehoused goods.
Clause 135 of the Bill seeks to insert sub-clause (c) in subsection (2) of section 156 of the Customs Act so as to empower
the Central Government to make rules to provide for the due date
and the manner of making deferred payment of customs duties,
taxes, cess or any other charges.
Clause 136 of the Bill seeks to amend the notifications issued
under sub-section (1) of section 25 of the Customs Act vide
numbers G.S.R. 367 (E) , dated the 27th April, 2000; 292(E), dated
the 19th April, 2002; 281 (E), dated the 1st April, 2003; 604 (E),
dated the 10 th September, 2004; 606(E), dated the 10th
September, 2004; 260 (E), dated the 1st May, 2006 in the manner
specified in the Second Schedule retrospectively from the date
respectively specified against them in column (4) of that Schedule,
so as to correct the reference to “section 8” in those notifications
as “section 8B”.
Customs Tariff
Clause 137 of the Bill seeks to omit section 8C of the Customs
Tariff Act as the provision which was inserted for a period of ten
years has lapsed.
Clause 138 seeks to amend the First Schedule to the Customs
Tariff Act,––
(i) in the manner specified in the Third Schedule with a view
to insert and amend certain entries and to enhance the rate of
duty on certain items;
(ii) in the manner specified in the Fourth Schedule with a
view to harmonise the same with Harmonised System of
Nomenclature with effect from the 1st day of January, 2017.
Excise
Clause 139 of the Bill seeks to amend section 5A of the Central
Excise Act so as to substitute sub-section (5) to provide that every
notification issued under sub-section (1) or sub-section (2A) shall,
unless otherwise provided, come into force on the date of its issue
by the Central Government for publication in the Official Gazette.
It is further proposed to omit sub-section (6) thereof.
Clause 140 seeks to amend section 11A of the Central Excise
Act, to substitute the words “two years” for the words “one year”
wherever they occur so as to increase the period of limitation in
cases not involving fraud, suppression, etc.
Clause 141 seeks to amend section 37B of the Central Excise
Act, to insert the words “or for the implementation of any other
provision of this Act” in section 37B so as to empower the Board to
issue orders, instructions and directions for the implementation of
any other provision of the said Act.
Clause 142 of the Bill seeks to amend the Third Schedule to the
Central Excise Act.
It also seeks to amend sub-section (2) thereof to substitute the
word “select” with the words “deem fit”.
Sub-clause (i) thereof seeks to amend the Third Schedule in
the manner specified in the Fifth Schedule so as to insert and
amend certain entries therein and to revise the rate of duty on
certain items.
Clause 133 of the Bill seeks to amend section 73 of the Customs
Act so as to insert the word “transferred or” after the words “exported
or”.
Sub-clause (ii) thereof seeks to amend the Third Schedule in
the manner specified in the Sixth Schedule so as to harmonise the
206
entries therein, with the Harmonised System of Nomenclature with
effect from the 1st day of January, 2017.
Excise Tariff
Clause 143 seeks to amend the First Schedule to the Central
Excise Tariff Act.
Sub-clause (i) thereof seeks to amend the First Schedule in the
manner specified in the Seventh Schedule so as to insert and
amend certain entries therein.
Sub-clause (ii) thereof seeks to amend the First Schedule in
the manner specified in the Eighth Schedule so as to harmonise
the First Schedule to the Central Excise Tariff Act with Harmonised
System of Nomenclature with effect from the 1st day of January,
2017.
Clause 144 of the Bill seeks to amend the Second Schedule to
the Central Excise Tariff Act in the manner specified in the Ninth
Schedule so as to harmonise it with the proposed amendments in
the First Schedule to the Central Excise Tariff Act with effect from
the 1st day of January, 2017.
Service Tax
Clause 145 of the Bill seeks to amend section 65B of the Finance
Act, 1994 (hereinafter referred to as the 1994 Act) so as to––
(a) omit clause (11);
(b) amend clause (44) to clarify the scope of services of lottery
distributor and selling agent.
Clause 146 of the Bill seeks to amend section 66D of the 1994
Act so as to––
(a) omit clause (l);
(b) omit sub-clause (i) of clause (o) and sub-clause (ii) of
clause (p) with effect from the 1st day of June, 2016.
Clause 147 of the Bill seeks to amend section 66E of the 1994
Act so as to insert clause (j) therein to include assignment by the
Government of the right of use the radio-frequency spectrum and
its subsequent transfers as a declared service.
Clause 148 of the Bill seeks to amend section 67A of the 1994
Act so as to insert a new sub-section (2) therein to empower the
Central Government to prescribe the time or the point in time with
respect to the rate of service tax.
Clause 149 seeks to amend section 73 of the 1994 Act to
substitute the words “thirty months” for the words “eighteen months”
wherever they occur, so as to increase the period of limitation in
cases not involving fraud, suppression, etc.
Clause 150 of the Bill seeks to amend section 75 of the 1994
Act to insert a proviso therein, so as to empower the Central
Government to specify, by notification, separate rate of interest in
the case of person who collects service tax but fails to pay such
amount so collected to the credit of the Central Government on or
before the due date of payment.
Clause 151 of the Bill seeks to insert an Explanation in section
78A of the 1994 Act so as to provide for deemed conclusion of
proceedings against any person liable under that section subject
to the conclusion of proceedings as provided therein.
Clause 152 of the Bill seeks to amend sub-section (1) of section
89 of the 1994 Act so as to increase the monetary limit of rupees
fifty lakh to rupees two hundred lakh.
Clause 153 of the Bill seeks to omit sub-section (2) of section
90 of the 1994 Act as the power of arrest in respect of offences
under clauses (a), (b) and (c) of sub-section (1) of section 89 is
proposed to be withdrawn.
Clause 154 of the Bill seeks to amend sub-section (1) and omit
sub-section (3) of section 91 of the 1994 Act as the power of arrest
in respect of offences under clauses (a), (b) and (c) of sub-section
(1) of section 89 is proposed to be withdrawn.
Clause 155 of the Bill seeks to amend section 93A of the 1994
Act so as to empower the Central Government to grant rebate by
way of notification as well.
Clause 156 of the Bill seeks to insert new sections 101, 102
and 103 in the 1994 Act with a view to extend service tax exemption
retrospectively for the services specified in the respective sections.
Clause 157 of the Bill seeks to amend the notification specified
in column (1) of the Tenth Schedule in the manner specified in
column (2) of that Schedule, retrospectively, for the period specified
in column (3) thereof.
Krishi Kalyan Cess
Clause 158 of the Bill seeks to insert new Chapter-VI so as to
levy a cess to be called the Krishi Kalyan Cess, as service tax on
all or any of the taxable services for the purposes of the Union for
financing and promoting initiatives to improve agriculture or for
any other purpose relating thereto.
Infrastructure Cess
Clause 159 of the Bill seeks to insert new Chapter VII so as to
levy Infrastructure Cess at the rate of 4% as duty of excise on all
goods specified in the Eleventh Schedule.
Equalisation Levy
Chapter VIII of the Bill seeks to insert a new Chapter in the
Finance Bill, 2016 which deals with equalisation levy, collection
and recovery of such levy.
Clause 160 of the Bill provides that the said chapter shall come
into force on such date as Central Government may, by notification
in the Official Gazette, appoint.
Clause 161 of the Bill seeks to define certain terms and
expressions used in this Chapter.
Sub-clause (1) of clause 161of the Bill seeks to make a provision
for the charging of equalisation levy at the rate of six per cent. of
the amount of consideration for specified services received or
receivable by a non-resident from a person resident in India and
carrying on business or profession or from a non-resident having
a permanent establishment in India.
Sub-clause (2) provides that no such levy shall be made, if the
non-resident service provider has a permanent establishment in
India and income from such specified services are effectively
connected to this permanent establishment. It is further provided
to exclude the consideration for specified services out of the scope
of equalisation levy if such consideration is not for the purpose of
carrying out business or profession. It is also provided that no
such levy shall be made if the aggregate amount of consideration
for specified services received or receivable by a non-resident
from a person resident in India or from a non-resident having a
permanent establishment in India does not exceed one lakh rupees
in any previous year.
Clause 162 of Bill provides for charge of equalisation levy at
the rate of six per cent. of the amount of consideration for any
207
specified service received or receivable by a person, being a nonresident from the persons referred therein.
Clause 163 of the Bill provides for collection and recovery of
equalisation levy by a person, being a resident and carrying on
business or profession or a non-resident having a permanent
establishment in India (assessee) by way of deduction from the
amount paid or payable to the non-resident in respect of specified
services. The amount of equalisation levy so deducted by the payer
has to be paid to the credit of the Government by 7th day of the
month following the month in which the equalisation levy is collected.
Clause 164 of the Bill provides for furnishing of statement by
the assessee responsible for deduction of equalisation levy , of a
statement in the prescribed form and prescribed manner and
setting-forth such particulars as maybe prescribed in respect of all
specified services entered into during a financial year.
Clause 165 of the Bill contains provisions relating to processing
of the value of specified services and equalisation levy payable or
refundable on the basis of such processing. It further provides for
computation mechanism. It also provides that no intimation shall
be made after the expiry of one year from the end of the relevant
financial year.
Clause 166 of the Bill provides for rectification of mistakes
apparent from the record of any order passed by the Assessing
Officer within one year from the end of the financial year in which
the order sought to be amended was passed. The Assessing
Officer may rectify mistakes either suo motu or at the instance of
the assessee. Further, any amendment which has the effect of
enhancing the liability or reducing a refund of the assessee shall
be made only after giving the assessee a reasonable opportunity
of being heard.
Clause 167 of the Bill provides for payment of simple interest at
the rate of one per cent. for every month or part of a month where
the equalisation levy collected is not credited to the account of the
Central Government within the period specified in the said clause.
Clause 168 of the Bill provides for imposition of penalty on the
assessee responsible to deduct equalisation levy. The penalty
would be a sum equal to the amount of equalisation levy not
deducted in a case where the assessee fails to deduct the whole
or any part of equalisation levy. In other cases, such penalty
imposed will be one thousand rupees for every such failure.
However, the penalty imposable under this clause shall not exceed
the amount of equalisation levy that was to be paid.
Clause 169 of the Bill provides for penalty for failure to furnish
statement under section 164. The penalty in such cases will be one
hundred rupees for every day during which the failure continues.
Clause 170 of the Bill provides that no penalty will be imposable
under clause or clause, if the assessee proves that there was
reasonable cause for the failure to comply with the provisions of
the said clause.
Clause 171 of the Bill provides for an appeal to the
Commissioner of Income-tax (Appeals) when the assessee denies
has liability to be assessed under this Chapter or against any order
passed under clause or clause by an Assessing Officer. This
clause also contains provisions relating to time for filing appeal,
etc., and provides that provisions of section 249 to 251 of the
Income-tax Act, shall as far as maybe, apply to such appeals.
Clause 172 of the Bill provides for appeal to the Appellate
Tribunal against order passed by Commissioner of Income-tax
(Appeals) under clause. This clause contains provisions relating
to time and procedure for filing appeal before the Appellate Tribunal.
This clause also provides that where an appeal has been filed
under this clause, the provisions of sections 252 255 of the Incometax Act shall, as far as may be, apply to such appeals.
Clause 173 of the Bill provides for punishment, by way of
imprisonment up to a period of three years and with fine, for making
any statement in any verification, account or statement which is
false. This clause also provides that an offence punishable under
this clause shall be deemed to be non-cognisable within the
meaning of the Code of Criminal Procedure, 1973.
Clause 174 of the Bill provides that no prosecution shall be
instituted for any offence under clause 173 except with the prior
sanction of the Chief Commissioner of Income-tax.
Clause 175 of the Bill provides that sections 120, 131, 133A,138,
156, Chapter XV and sections 220 to 227, 229, 232, 260A, 261,
262, 265 to 269, 278B, 280A,280B,280C,280D, 282 to 293 of the
Income-tax Act which, inter alia, relate to issue of notice of demand,
recovery and collection of tax, appeals to High Courts and the
Supreme Court, appearance of authorised representatives, etc.,
will so far as maybe, apply in relation to equalisation levy.
Clause 176 of the Bill confers power on the Central Government
to make rules for the purposes of carrying out the provisions of
this Chapter. This clause also provides that every rule made under
this clause shall be laid before each House of Parliament.
Clause 177 of the Bill confers power on the Central Government
to issue orders for removal of any difficulty arising in giving effect
to the provisions of this Chapter. This power is available to the
Central Government for a period of two years from the date on
which the provisions of this Chapter come into force. Every order
made under this clause shall be laid before each House of
Parliament.
These amendments will take effect from the date appointed in
the notification to be issued by the Central Government.
Income Declaration Scheme
Clauses 178 to 196 of the Bill seeks to insert a new Chapter IX
relating to Income Declaration Scheme, 2016. The said Scheme,
inter alia, provides for declaration of undisclosed income by any
person. The scheme shall be in operation from the 1st day of June,
2016 till a date to be notified by the Central Government in the
Official Gazette. The proposed Chapter, inter alia, provides for
levying a tax of thirty per cent. on the undisclosed income declared
in the scheme, a surcharge at the rate of twenty-five per cent. of
such tax as Krishi Kalyan Cess; and penalty at the rate of twentyfive per cent. of tax; procedure and manner of filing the declaration
under the said Scheme; undisclosed income declared under the
said Scheme not be included in the total income or affect finality
of completed assessments; income declared under the said
Scheme shall not be refundable; exemption from wealth-tax in
respect of assets specified in declaration; power to remove difficulty
by the Central Government; and power of Central Board of Direct
Taxes with the approval of the Central Government to make rules
for the purposes of the said Scheme.
Direct Tax Dispute Resolution Scheme
Clauses 197 to 208 of the Bill seeks to insert a new Chapter X
in the Finance Bill, 2016 which deals with the Direct Tax Dispute
Resolution Scheme, 2016.
The Scheme is proposed to come inforce from 1st June, 2016
and be open for declaration made up to a date to be notified by
the Central Government in the Official Gazette.
The new Chapter, inter alia, provides––
(a) the definition of certain expressions relating to “declarant”,
“designated authority”, “disputed income”, “disputed tax”,
“disputed wealth”, “specified tax” and “tax arrear”;
208
(b) the proviso relating to the declaration of tax payable under
this Scheme by the declarant;
(c) the provisions relating to the particulars to be furnished in
the form of declaration;
(d) the provisions relating to the time and manner of payment;
(e) the provisions relating to granting of immunity from
initiation of procedings in respect of an offence and imposition
of penalty in certain cases;
(f) the provisions relating to no refund of amount paid under
the Scheme;
(g) the provisions relating to other benefit, concession or
immunity not to apply in other proceedings;
(h) the provisions relating to non-applicability of the Tax
Dispute Resolution Scheme, 2016 in certain cases;
(i) the provisions relating to the power of the Central Government
to issue directions; and
(j) the provisions relating to the power to remove difficulties in
giving effect to the provisions of the Direct Tax Dispute Resolution
Scheme, 2016.
Indirect Tax Dispute Resolution Scheme, 2016.
Clauses 209 to 215 of the Bill seeks to insert new Chapter XI to
provide for the Indirect Tax Dispute Resolution Scheme, 2016.
The said Scheme provides for settlement of the disputes pending
before the Commissioner (Appeal) as on the 1st March, 2016, on
payment of tax dues along with interest and twenty-five per cent.
of the penalty imposed by the impugned order. The said scheme
is applicable to the declarations made upto the 31st day of
December, 2016.
Clauses 216 to 220 of the Bill seeks to amend certain provisions
of the Reserve Bank of India Act, 1934. It is proposed to amend
section 2 of the Act so as to insert therein certain definitions to the
expressions “Consumer Price Index”, “inflation”, “Monetary Policy
Committee”. It is further proposed to insert a new Chapter IIIF in
the Act consisting of sections 45Z to 45-O relating to monetary
policy to meet the challenge of an increasingly complex economy
and to maintain price stability.
The proposed new Chapter inter alia provides that,––
(i) the Central Government shall, in consultation with the Bank
(Reserve Bank of India), determine the inflation target in terms of
the Consumer Price Index, once in every five years;
(ii) the Central Government may constitute a Committee to be
called the Monetary Policy Committee of the Bank which shall
consist of the Governor of the Reserve Bank of India as a
Chairperson, Deputy Governor of the Bank, one officer of the Bank
to be nominated by the Central Board and three persons be
appointed by the Central Government as Members to the
Committee;
(iii) section 45ZC to 45ZG deals with the terms and conditions
of Members of the Monetary Policy Committee;
(iv) the Bank shall provide all information to the Members of the
Monetary Policy Committee that may be relevant to achieve the
inflation target;
(v) the Bank shall publish a document explaining the steps to
be taken by it to implement the decisions of the Monetary Policy
Committee, including any changes thereto;
(vi) the Bank shall, once in every six months, publish a document
to be called the Monetary Policy Report, explaining the sources of
inflation; and the forecasts of Inflation for the period between six
to eighteen months from the date of publication of the document.
It is also proposed to make certain amendments to the said
Act which are consequential in nature.
Miscellaneous
Clause 221 of the Bill seeks to amend section 3 of the Central
Sales Tax Act, 1956 so as to insert an Explanation 3 therein to
provide that where the gas sold or purchased and transported
through a common carrier pipeline or any other common transport
or distribution system becomes co-mingled and fungible with other
gas in the pipeline or system and such gas is introduced into the
pipeline or system in one State and is taken out from the pipeline
in another State, such sale or purchase of gas shall be deemed to
be a movement of goods from one State to another.
Clause 222 seeks to amend the Schedule to the Oil Industry
(Development) Act, 1974 so as to levy cess at the rate of twenty
per cent. ad valorem instead of the present rate of Rs.4500 per
tonne, on domestically produced crude oil.
Clause 223 of the Bill seeks to amend sections 2A, 3 and 12 of
the Smugglers and Foreign Exchange Manipulators (Forfeiture of
Property) Act, 1976.
The aforesaid sections, inter alia, provides for establishment of
Appellate Tribunal for hearing appeals against the orders made
under the aforesaid Act.
Clause 224 of the Bill seeks to amend sections 68B, 68N and
section 76 of the Narcotic Drugs and Psychotropic Substances
Act, 1985.
The aforesaid sections, inter alia, provides for establishment of
Appellate Tribunal for hearing appeals against the orders made
under the aforesaid Act.
It is proposed to amend the aforesaid sections so as to provide
that the Appellate Tribunal established under the Smugglers and
Foreign Exchanged Manipulators (Forfeiture of Property) Act, 1976
shall be the Appellate Tribunal for hearing the appeals against the
orders made under the Narcotic Drugs and Psychotropic
Substances Act, 1985.
Clauses 225 and 226 of the Bill seeks to amend the Foreign
Exchange Management Act, 1999 so as to insert a new section
14A relating to power to recover arrears of penalty.
Clause 227 of the Bill seeks to amend section 10 of the Central
Road Fund Act relating to functions of the Central Government.
The aforesaid section, inter alia, provides for distribution of cess
collected under the said Act, among various projects.
It is proposed to substitute clause (viii) of sub-section (1) of the
aforesaid section so as to provide for redistribution of the cess for
different purposes.
It is further proposed to provide that no repair, maintenance or
renovation work shall be carried out from the allocation of cess
under sub-clause (c) of the said clause.
It is also proposed to omit sub-section (2) of the aforesaid
section.This amendment will take effect from 1st June, 2016.
Clause 228 of the Bill seeks to amend the Seventh Schedule to
the Finance Act, 2001, so as to amend the said Schedule,––
(a) in the manner specified in the Twelfth Schedule to align the
same with the entries relating to levy of National Calamity
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Contingency Duty with that in the First Schedule to the Central
Excise Tariff Act, 1985;
(b) in the manner specified in the Thirteenth Schedule to
harmonise it with the proposed amendments in the First Schedule
to the Central Excise Tariff Act, 1985. The amendment shall come
into force on the 1st day of January, 2017.
Clause 229 seeks to amend the prevention of MoneyLaundering Act, 2002. It is proposed to amend the aforesaid Act
so as to confer powers upon the Appellate Tribunal established
under the said Act to hear appeals against orders made under the
Narcotic Drugs and Psychotropic Substances Act, 1985 and the
Prevention of Money-laundering Act, 2002 and certain
consequential amendments.
Clause 230 of the Bill seeks to amend section 98 of the Finance
(No.2) Act, 2004 relating to charge of securities transaction tax.
contributions such company shall not be deemed to be a foreign
source, if the foreign investment is within the limit specified under
the Foreign Exchange Management Act, 1999 or the rules or
regulations made thereunder.
Clause 234 of the Bill seeks to amend the Finance Act, 2013
relating to commodities transaction tax.
The provisions of the said Chapter, inter alia, provides for
chargeability of tax on taxable commodities transactions.
It is proposed to amend the said Chapter so as to provide that
the provisions of chapter VIII shall not apply to taxable commodities
transactions entered into by any person on a recognised
association in an International Financial Services referred to in
clause (q) of section 2 of the Special Economic Zones Act, 2005.
This amendment will take effect from 1st June, 2016.
The aforesaid section provides that the securities transaction
tax on sale of an option in securities where option is not exercised
is 0.017 per cent. of the option premium.
Clause 235 of the Bill inter alia, provides for establishment,
utilisation and notifying the eligible rate of interest money lying in
the Senior Citizens’ Welfare Fund.
It is proposed to increase the said rate of securities transaction
tax from 0.017 per cent. to 0.05 per cent.
This clause further seeks to omit clause (ii) of section 4 of the
Finance Act, 2015 with effect from 1st April, 2016.
It is also proposed to amend the section 113A so as to provide
that the provisions of Chapter VII shall also not apply to taxable
securities transactions entered into by any person for on a
recognised stock exchange located in an International Financial
Services Centre referred to in clause (q) of section 2 of the Special
Economic Zones Act, 2005.
This clause also seeks to amend section 122 relating to
establishment of Fund, section 124 relating to payment of claims
and section 128 relating to power of the Central Government to
make rules.
This amendment will take effect from 1st June, 2016.
Clause 231 of the Bill seeks to amend the Seventh Schedule to
the Finance Act, 2005 to revise the rate of excise duty on certain
tariff items in the manner specified in the Fourteenth Schedule.
Clause 232 of the Bill seeks to substitute the words “Clean
Energy Cess” with “Clean Environment Cess” occurring in Chapter
VII of the Finance Act, 2010 or in any other law.
It further seeks to amend the Tenth Schedule to the Finance
Act, 2010, so as to increase the rate of Clean Energy Cess on
coal, lignite and peat from Rs.300 per tonne to Rs.400 per tonne.
Clause 233 of the Bill seek to amend the Foreign Contribution
(Regulation) Act, 2010 so as to insert a proviso in sub-clause (vi)
of clause (j) of sub-section (1) of section 2 of the said Act providing
therein that notwithstanding the nominal value of share capital of
a company exceeding one-half per cent. at the time of making
It is also proposed to amend sub-section (2) of the said section
so as to provide overriding effect for the provisions of Chapter VII
of the said Act over other laws for the time being in force in respect
of Senior Citizens’ Welfare Fund. Further, section 124, inter alia,
provides for payment of claims to any person claiming to be entitled
to the unclaimed amount transferred to the Senior Citizens’ Welfare
Fund. It is proposed to omit sub-section (5) of the said section.
Also, section 128, inter alia, provides for rule making provisions in
respect of various provisions of Chapter VII of the said Act relating
to Senior Citizens’ Welfare Fund. It is proposed to omit clause (c)
of sub-section (2) of the said section.These amendments will take
effect from 1st June, 2016.
Clause 236 to 238 of the Bill seek to repeal certain enactments
specified in the Fifteenth Schedule and amend certain enactments
specified in the Fifteenth Schedule.It is proposed to repeal the
provisions relating to imposition of cess in the Acts specified in
the Fifteenth Schedule to the extent mentioned in column (4) which
are yielding minimal cess and amend the enactments specified in
the Fifteenth Schedule to the extent mentioned in column (4).
MEMORANDUM REGARDING DELEGATED LEGISLATION
Clause 43 of the Bill seeks to insert a new section
80-IBA in the Income-tax Act relating to deductions in
respect of profits and gains from housing projects.
Sub-section (2) of the proposed section provides
that for the purposes of sub-section (1) of the said
section, a housing project shall fulfil the conditions
specified therein. Clause (a) of sub-section (2) of the
said section provides that a housing project shall be
that project which is approved by the competent
authority after the 1st day of June, 2016, but on or
before the 31st day of March, 2019, in accordance with
such guidelines as may be prescribed;
Clause 47 of the Bill seeks to amend section 92D
of the Income-tax Act relating to maintenance and
keeping of information and document by persons
entering into an international transaction or specified
domestic transaction.
The proposed amendment seeks to provide that
any person, being a constituent entity of an
international group, shall also keep and maintain such
information and document in respect of an international
group as may be prescribed.
Clause 49 of the Bill seeks to insert a new section
115BA in the Income-tax Act relating to tax as income
of certain domestic companies. Sub-section (2) of the
proposed section provides that for the purposes of subsection (1), while computing the total income of the
company, the depreciation under section 32 is
determined in the manner as may be prescribed. Subsection (4) of the proposed section further seeks to
provide that the option by the person referred to in subsection (1) shall be exercised in the prescribed manner
on or before the due date specified under sub-section
(1) of section 139 for furnishing the return of income
for the relevant previous year.
Clause 56 of the Bill seeks to amend section115QA
of the Income-tax Act relating to tax on distributed
income to shareholders.
The proposed amendment seeks to provide that
the expression "distributed income" means the
consideration paid by the company on buy-back shares
as reduced by the amount, which was received by the
company for issue of such shares shall be determined
in the manner as may be prescribed.
Clause 85 of the Bill seeks to amend section 206AA
of the Income-tax Act relating to requirement to furnish
Permanent Account Number.
The proposed amendment seeks to provide that
the provisions of sub-section (7) shall not apply to a
non-resident, not being a company, or to a foreign
company, in respect of payment of interest on longterm bonds as referred to in section 194LC and any
other payment subject to such conditions as may be
prescribed.
Clause 86 of the Bill seeks to amend section 206C
of the Income-tax Act relating to profits and gains from
the business of trading in alcoholic liquor, forest
produce, scrap, etc.
The proposed amendment seeks to insert a proviso
in sub-section (1D) of said section so as to provide
that nothing contained in the said sub-section, in
relation to sale of any goods (other than bullion and
jewellery) or providing services, shall apply to a class
of buyers who fulfils such conditions as may be
prescribed.
Clause 97 of the Bill seeks to insert a new section
270AA in the Income-tax Act relating to immunity from
imposition of penalty.
The proposed amendment seeks to provide that
to claim immunity from imposition of penalty under
section 270A of the Income-tax Act and immunity from
initiation of proceedings under section 276C of said
Act, the assessee has to make an application to the
Assessing Officer within one month from the end of
the month in which the order referred to in clause (a)
of sub-section (1) has been received and shall be made
in such from and verified in such manner as may be
prescribed.
Clause 110 of the Bill seeks to insert a new section
286 in the Income-tax Act relating to furnishing of
reports in respect of international group.
Sub-section (1) of the proposed section seeks to
provide that every constituent entity resident in India,
shall, if it is constituent of an international group, the
parent entity of which is not resident in India, notify the
prescribed income-tax authority in the form and
manner, as may be prescribed, whether it is the
alternate reporting entity of the international group or
the details of the parent entity or the alternate reporting
entity, if any, of the international group, and the country
or territory of which the said entities are resident, on
or before the due date as may be prescribed.
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211
Sub-section (2) of the proposed section further
seeks to provide that every parent entity or the alternate
reporting entity, resident in India, shall, for every
reporting accounting year, in respect of the
international group of which it is a constituent, furnish
a report, to the prescribed authority on or before the
due date specified under sub-section (1) of section 139,
for furnishing the return of income for the relevant
accounting year, in the form and manner as may be
prescribed.
Sub-section (8) of the proposed section also seeks
to provide that the provisions of the said section shall
not apply in respect of an international group for an
accounting year, if the total consolidated group
revenue, as reflected in the consolidated financial
statement for the accounting year preceding such
accounting year does not exceed the amount, as may
be prescribed.
Sub-section (9) of the proposed section also seeks
to provide that the provisions of the said section shall
be applied in accordance with such conditions, as may
be prescribed.
Indirect-tax
Clause 118 of the Bill seeks to insert a proviso in
sub-section (1) of section 47 of the Customs Act so as
to empower the Central Government to permit certain
class of importers, specified by notification in the
Official Gazette, to make deferred payment of duty or
any charges, in the manner provided by rules. The said
Clause also seeks to amend sub-section (2) of said
section. Clause (b) thereof, empowers the Central
Government to specify by rules the due date for making
deferred payment of duty.
Clause 119 of the Bill seeks to renumber
section 51 of the Customs Act as sub-section (1)
thereof and to insert a proviso in sub-section (1) so as
to empower the Central Government to permit certain
class of exporters, specified by notification in the
Official Gazette, to make deferred payment of duty or
any charges in the manner provided by rules.
The said clause also seeks to insert sub-section
(2) therein to empower the Central Government to
specify, by rules, the due date for making deferred
payment of export duty. It also empowers the Central
Government to fix, by notification in the Official Gazette,
the rate of interest not below five per cent. and not
exceeding thirty-six per cent. per annum.
Clause 120 of the Bill seeks to substitute a new
section for section 53 of the Customs Act. The
proposed new section 53 seeks to empower the Board
to make regulations to provide for conditions subject
to which the proper officer may allow the goods and
the conveyance to transit without payment of duty.
Clause 121 of the Bill seeks to substitute a new
section for section 57 of the Customs Act. The
proposed new section seeks to empower the Board to
make regulations to provide for conditions subject to
which the Principal Commissioner of Customs or
Commissioner of Customs may licence a public
warehouse wherein dutiable goods may be deposited.
Clause 122 of the Bill seeks to substitute new
sections 58,58A and 58B for section 58 of the Customs
Act.
The proposed section 58 seeks to empower the
Board to make regulations to provide for conditions
subject to which the Principal Commissioner of
Customs or Commissioner of Customs may licence a
private warehouse in which dutiable goods imported
by or on behalf of the licensee may be deposited.
The proposed section 58A seeks to empower the
Board to make regulations to provide for conditions
subject to which the Principal Commissioner of
Customs or Commissioner of Customs may licence a
special warehouse wherein dutiable goods may be
deposited.
Clause 123 of the Bill seeks to substitute a new
section for section 59 of the Customs Act. Sub-section
(3) of the proposed section 59 seeks to empower the
Board to make regulations to provide for furnishing of
security by the importer.
Clause 124 of the Bill seeks to substitute a new
section for section 60 of the Customs Act. Sub-section
(2) of the proposed section 60 seeks to empower the
Board to make regulations to provide for the manner
in which goods may be deposited in a warehouse
pursuant to an order made by the proper officer
permitting removal of goods from customs station for
the purpose of deposit in a warehouse.
Clause 134 of the Bill seeks to insert a new section
73A in the Customs Act. Sub-section (2) of the
proposed section 73A seeks to empower the Board to
make regulations to provide for the responsibilities of
the person who has been granted licence under section
57 or section 58 or section 58A, who has the custody
of the warehoused goods.
Clause 148 of the Bill seeks to renumber the
existing provision of section 67A of the Finance
Act,1994 as sub-section (1) thereof and to insert a new
sub-section (2) therein. The proposed sub-section (2)
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seeks to empower the Board to make regulations to
provide for the time or the point in time with respect to
the rate of service tax.
Clause 171 of the Bill seeks to provide that in
respect of matters relating to equalisation levy, the
appeal to be filed by the assessee before the
Commisssioner of Income-tax shall be in such form
and verified in such manner as may be prescribed and
shall be accompanied by a fee of one thousand rupees.
the form and the manner in which the designated
authority shall acknowledge the declaration.
Sub-section (4) of said section seeks to empower
the Central Government to make rules to provide for
the form in which the designated authority shall pass
an order of discharge of dues.
Clause 209 of the Bill seeks to insert a new Chapter
XI to provide for the Indirect Tax Dispute Resolution
Scheme, 2016.
Clause 215 of the Bill provides for rule making
power of the Central Government under the Indirect
Tax Dispute Resolution Scheme, 2016. Clause (d) of
sub-section (2) of section 215 provides for residuary
power to make rules to the Central Government under
the said Scheme.
Sub-section (1) of section 211 of the Scheme seeks
to empower the Central Government to make rules to
provide for the form and the manner in which a person
may make declaration to the designated authority on
or before the 31st day of December, 2016.
2. The matters in respect of which rules or
regulations may be made or notifications may be
issued in accordance with the provisions of the Bill
are matters of procedure and detail and it is not
practicable to provide for them in the Bill.
Sub-section (2) of said section seeks to empower
the Central Government to make rules to provide for
3. The delegation of legislative power is,
therefore, of a normal character.
LOK SABHA
________
A
BILL
to give effect to the financial proposals of the Central Government
for the financial year 2016-2017.
________
(Shri Arun Jaitley,
Minister of Finance.)